It has been introduced the leading banks of the nation has introduced foreclosure penalties,while the PSU banks were offering penalty waivers to attract depositors.Lately many of the banks have decreased their rates. The Indian overseas bank has announced that the foreclosure penalaties are applicable from 7th January itself.
The reports stated that State bank of India does not charge any foreclosure levy for deposits of Rs 15 lakhs and above if the deposit has remained with the bank for at least 7 days. For deposits below Rs 15 lakhs, the bank charges a penalty 0.50% per annum. ICICI bank has no specail schemes for the interst waivers. While HDFC Bank charges a penalty of 1% on the applicable rate of interest for premature withdrawals.