On Monday, Axis Bank announced the removal of penalty on premature closure of all new retail term deposits booked on or after 15 December 2020 for a tenure of 2 years or more.
"The objective of this customer-friendly feature is to inculcate and encourage retail customers to go for long-term savings without worrying about the sudden need for liquidity," the private bank said in a press statement.
The exemption will be available to customers of all new fixed and recurring deposits.
For new deposits booked for a tenure above 2 years, there will be nil premature penalty if the entire deposit is prematurely withdrawn post 15 months of booking. The new feature also offers no penalty on first withdrawal of up to 25% of term deposit principal value.
With effect from 4 January 2020, Axis Bank has been offering 5.40% interest on deposits of less than Rs 2 crore made for a period of 2 years to 30 months.
The private bank said that new feature is in line with its objective to introduce customer-centric benefits by offering flexibility and convenience, while also improving its book quality.