Axis Bank proclaims no penalty on untimely closure of time period deposits

Mumbai: In a first-of-its-kind transfer, personal lender Axis Bank on Monday introduced the elimination of penalty on untimely closure of all new retail time period deposits booked on or after December 15, 2020 for a tenure of two years or extra.

“The objective of this customer-friendly feature is to inculcate and encourage retail customers to go for long-term savings without worrying about the sudden need for liquidity,” the financial institution stated in a press assertion.

The new characteristic might be relevant on all new fastened deposits and recurring deposits. For new deposits booked for a tenure above 2 years, there might be nil untimely penalty if all the deposit is prematurely withdrawn publish 15 months of reserving. The new characteristic additionally presents no penalty on first withdrawal of as much as 25 p.c of time period deposit principal worth.

“To stay ahead of the curve, we have waived off the penalty on all term deposits closed after 15 months. This new feature is in line with our objective to introduce customer centric benefits by offering flexibility and convenience, while also improving our book quality,” stated Praveen Bhatt, EVP – Retail Liabilities and Direct Banking Products, Axis Bank.