Premature withdrawal is permitted provided the fixed deposit has completed more than 3 months from the date of issuance.
Premature withdrawal is possible subject to RBI regulations in this regard. Some of the conditions are -
(a) Up to 3 months from date of Deposit:
Withdrawal of the Deposit is not permitted except in case of death of the depositor.
(b) After 3 months but before 6 months from the date of the Deposit:
Withdrawal of the Deposit will be permitted; however, interest shall not be payable.
(c) After 6 months but before the date of maturity of the Deposit:
The Interest payable shall be 2 per cent lower than the Interest rate applicable to a Fixed deposit for the period for which the Fixed deposit has run or if no rate has been specified for that period, then 3 per ent lower than the minimum rate at which Fixed deposits are accepted by the Company