In a major development, Axis Bank has announced the removal of penalty on premature closure of all new retail term deposits booked on or after December 15, 2020 for a tenure of 2 years or more. The new feature will be applicable on all new fixed deposits and recurring deposits.

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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deposits booked for a tenure above 2 years, there will be nil premature penalty if the entire deposit is prematurely withdrawn post 15 months of booking.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 percent of term deposit principal value.

"Additionally, Axis Bank provides attractive interest rates and multiple options like, cumulative, monthly or quarterly pay-out of interest on its fixed and recurring deposits," the bank said in a statement.

Axis Bank says, "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."

Commenting on this move by Axis Bank, Praveen Bhatt, EVP - Retail Liabilities and Direct Banking Products, Axis Bank said: “We at Axis Bank are continuously working on bringing new and exciting features to meet the changing needs of our customers. Thus, to stay ahead of the curve, we have waived off the penalty on all term deposits closed after 15 months. This new feature is in line with our objective to introduce customer-centric benefits by offering flexibility and convenience, while also improving our book quality.”

Recently, strengthening its offerings for the MSME segment, Axis Bank had launched an exclusive business credit card in partnership with Rupifi, an embedded lending fintech company that provides financial solutions to MSMEs. The Co-Branded credit card, powered by Visa, will enable the small and medium-sized enterprises to transact on the aggregator platforms partnering with Rupifi for their business purchases and will offer tailored credit solutions to such micro-enterprises having existing trade relationships with these platforms.