RBI BANS ‘DISCRIMINATORY’ DEPOSIT SCHEMES

The Reserve Bank of India (RBI) has slammed the brakes on banks cornering deposits through special schemes with lock-in periods. The fact that these banks give depositors no access to their own funds during the tenure, offer no liquidity against the deposits, or even allow premature withdrawals prompted the apex bank to order an immediate halt to such schemes. Banks have also been directed to report compliance forthwith.