Banks may charge the consumer for changing FD tenure

Banks may charge the consumer for changing FD tenureFor the consumers who were interested in reinvesting in a deposit scheme paying higher interest rate by playing with the tenure of the current FD scheme, things may be tough in near future.

Reserve Bank of India (RBI) has recently allowed the banks operating in the Indian banking industry to formulate policies on an individual basis for the consumers who want to switch between the deposit schemes. Notably, at a point in time when interest rates are expected to rise in the marketplace, experts are of a view that the current move will provide a check exodus on the term deposits and the reshuffling between the same.

According to a senior SBI official the state-owned entity has formulated a uniform policy with a view that it can't discriminate between its consumers. However, the bank is still working with a view that if there's any mass movement within the bank's consumer arena to a more interest-fetching scheme, the company can do a check.

However, KVS Manian, group head of consumer banking at Kotak Mahindra Bank explained that the scenario is still not likely to change in the short-run keeping in mind that the consumers aren't used to the same.