By MADHU AGRAWAL
Corporation Bank provided CorpClassic FDR-linked saving-accounts with minimum balance in savings-accounts of rupees 15000 and thereafter multiples of rupees 5000 being auto-transferred in linked FDR with an option of term-deposit from 15 days to 5 years.
But now Union Bank of India has informed customers of erstwhile Corporation Bank that with effect from 01.04.2020, minimum amount required in such savings-accounts with FDR-linked facility will be rupees 50000 with multiples of rupees 10000 being auto-transferred in linked FDR with an option of term-deposit from 45 days to 1 year. Such sudden jerk in minimum rupees 50000 balance in savings accounts will result in decrease in interest-income for FDR-linked savings accounts. Moreover small investors not affording such high jerk in minimum requirement of rupees 50000 in savings account will be deprived of a good FDR-linked savings-account facility.
Union Bank of India should adopt the mid-path by revising FDR-linked saving-scheme accounts by requiring rupees 20000 as minimum balance thereafter multiples of rupees 10000 being auto-transferred in linked FDR with fixed option of term-deposit of one year.
Rather Reserve Bank of India RBI should have same requirements for all public-sector banks in terms of scheme-requirements and interests on deposits.