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Module: General Practice

Q8: How is the rate of interest determined for a matured deposit standing in the name of a deceased individual depositor?

A
It automatically converts to the prevailing savings account rate.
B
It is determined as per the comprehensive policy approved by the bank's Board of Directors.
C
The contracted term deposit rate continues to apply indefinitely.
D
It attracts the lowest rate of interest offered by the bank.
✅ Correct Answer: B
The interest rate on matured deposits for a deceased depositor is determined by the bank's Board-approved policy.
While the RBI sets the framework for Interest Rates on Deposits, banks have discretion here to formulate compassionate yet operationally sound policies for deceased claims.
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