Auto renewal of term deposits by banks?

Question

Many banks auto renew term deposits without our consent, which is disgusting...Many a time, the depositor is losing interest if he approaches the bank after due date...If the bank is customer-centric for preventing loss of interest on deposit by autorenewal it should do so only after the stipulated 30 days time, and not on deposit date itself. TDS and other factors like higher or lower interest for varied periods are there, in which depositor's interests are curtailed. RBI would do well to instruct banks not to autorenew deposits without the depositor's consent.

Answer 1

Hi Ganesh,

Bank can not put a deposit under Auto-renew mode without customer's instruction. In fact, the Bank is supposed to intimate the customer 15 days before the maturity date seeking the new renewal instruction. If you have been aggrieved by the wrong action of the Bank, please follow the below steps :-

1.    Go to your Bank’s website and search for grievance redressal (or similar name) button and submit your complaint online furnishing the details.

2.    If you do not receive any reply / satisfactory reply within 10 days, lodge your complaint with the Nodal officer of the Bank (either through email or letter)

3.    If you do not receive any reply / satisfactory reply within 10 days from the Nodal officer, lodge your complaint with the Principal Nodal officer of the Bank (either through email or letter)

4.     If still not satisfied with the reply / do not receive reply from the Principal Nodal officer within 10 days, lodge your complaint with the Banking Ombudsman within your jurisdiction (either through letter or email), whose website is https://bankingombudsman.rbi.org.in/