Can The Company Dictate The Terms Of PWl Of My Own Money?

I have a company FD with DHFL. The company is under tremendous financial stress. Company MD expresses his concern in Economic Times if they can sustain as a going concern. The company is asking me to prove the reason for premature withdrawal (PW).... Read More

I have a company FD with DHFL. The company is under tremendous financial stress. Company MD expresses his concern in Economic Times if they can sustain as a going concern. The company is asking me to prove the reason for premature withdrawal (PW). Presently the company is approving PW in case of medical issue in family or study expenses of dependant for the premature withdrawal. Can the company dictate the terms of PWl of my own money? Kindly advise.
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Answer (1)

Dhriti Dewan

Dhriti Dewan

  • Sector-1, Noida

As per the norms of RBI when you have invested in company FDs then the minimum lock-in period is of three months. After this lock-in period, premature withdrawals are allowed from company FDs but then penalty charges would be imposed which vary from company to company.

Not satisfied with the information you can consult our legal experts in India who will advise and guide you for the same.

Answered on 20 Jul 2019


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