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Q35: What is the interest rate applicable to a Term Deposit that matures and proceeds are left unclaimed with the bank?

A
It earns interest at the originally contracted rate indefinitely.
B
It attracts the rate of interest applicable to savings accounts or the contracted rate of interest on the matured deposit, whichever is lower.
C
It is transferred to the DEA Fund immediately and stops earning interest.
D
It earns the prevailing fixed deposit rate for a maximum of one year.
✅ Correct Answer: B
The correct answer is B. According to the RBI Directions on overdue term deposits, if a term deposit matures and the proceeds are left unpaid/unclaimed with the bank, the amount left with the bank shall attract interest at the rate applicable to savings accounts or the contracted rate of interest on the matured term deposit, whichever is lower.
Options A, C, and D are factually incorrect regarding the immediate treatment of unclaimed matured deposits.
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