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Akash (XYZ)     28 December 2014

Renewal of bank fixed deposits

My parents had some fixed deposits with State bank of India, which matured four years back and they forgot to renew the fixed deposits . Neither did the bank transfer the money back into  my parents savings account after the deposit term ended. I am not sure if the bank sent any reminder. My parents do not recollect receiving any reminder that the fixed deposits are due for renewal?

I am seeking your learned advice as to what the banking regulations say about automatic renewal in such situations? Would my parents be able to claim the interest since the money was with the bank or will they loose the interest?

Thank you in advance for your valued feedback and time. I really appreciate the valuable inputs and the time the learned attorneys take to advise the common man like me.



Learning

 3 Replies

Hardeep (Business)     28 December 2014

AFAIK, Bank is not liable to pay interest on such amounts lying unclaimed with them. But in US, they can't do this - doctrine of " unjust enrichment "holds. See

 

https://www.moneylife.in/article/why-should-bank-depositors-get-a-raw-deal-from-banks/28752.html

 

Maybe here someone will file a PIL some day....till then, there seems to be no recourse....

Kumar Doab (FIN)     28 December 2014

You may refer to RBI: Master Circular On customer Services, and Bank's policies framed in accordance with it......................... that should be available on bank's website and a copy should be made available to customer/claimant without any cost.......

SEKAR XXXXX (Sr Engineer)     08 January 2015

The Automatic renewal rules may vary with bank to bank.kindly refer the bank policy.


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