Categories: Bank News

Withdrawal of additional interest on Bank deposits: AGID,NGIF and AFGIS lost benefits

Army Group Insurance Directorate (AGID), Naval Group Insurance Fund (NGIF) and Air Force Group Insurance Society (AFGIS) for their deposits of 2 years and above were eligible for 1.28 per cent over and above the normal rate of interest from public sector banks since 1987. RBI today said that interest rate on such deposits should be at par with other deposits of similar maturity and amount. The Banking regulator decided to withdraw the prescription of offering additional interest is in view of complete deregulation of interest rates on deposits as per bank’s communication No. RBI/2015-16/147 dated Aug 06, 2015.

Since RBI permission to pay additional interest on above said deposits stands withdrawn, interest rate of fresh deposits at par with other deposits of similar maturity and amount. The interest on existing term deposits of AGID, NGIF and AFGIS may be continued till maturity.

 

 

Surendra Naik

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Surendra Naik

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