RBI changes interest rate on matured Term Deposit

The Reserve Bank of India has modified the instructions governing the interest rate to be paid by banks on the amount of Term Deposit that has matured and the proceeds are left unpaid.
Earlier, such unclaimed term deposits earned an interest rate as applicable on Savings deposits.
As per revised guidelines, such unclaimed term deposit will earn an interest rate as applicable to a savings account or the contracted rate of interest on the matured Term Deposit, whichever is lower.

Points to remember:

What interest rate will be applicable on a Term Deposit (TD) that has matured and whose proceeds are unpaid? Options- Savings Interest/ Usual Interest rate of Term Deposit/ Average of Savings Interest and Interest of Term Deposit/Savings Interest or Usual Interest rate of Term Deposit, whichever is lower.

Source: RBI