Kashvi Pathak put ₹4 lakh in a five-year fixed deposit with a deposit-taking NBFC. Six weeks later her father needed urgent surgery, and she needed the money back at once. Earlier, NBFC depositors had almost no clear right to pull out money early. From 1 January 2025, new RBI rules give savers like her a defined right to a premature withdrawal. This guide tells you which rule applies to you and how to claim.

These rights come from the RBI Master Direction on NBFC public deposits, which RBI amended in August 2024 and made effective from 1 January 2025. The rules cover deposit-taking NBFCs, often called NBFC-D, and not your bank fixed deposits.

Your right to take money out early depends on the size of your deposit and your reason. There are three clear buckets. Find the one that fits your situation, then read the rest of this guide.

Reading the table. The first two buckets apply only in the first three months after you place the deposit, and the early-exit amount comes back without interest. The third bucket is the key safety net. For a critical illness or an emergency such as a serious medical expense or a natural calamity, the NBFC must return the entire deposit within the first three months, however large it is. The 50 percent or ₹5 lakh cap does not apply to a genuine emergency.

Savers often get the second bucket backwards. You can take out 50 percent of the principal or ₹5 lakh, whichever is lower. So on a ₹4 lakh deposit, 50 percent is ₹2 lakh, which is lower than ₹5 lakh, so you can withdraw up to ₹2 lakh early. On a very large deposit, the ₹5 lakh figure becomes the limit.

This is the point most people miss. A bank fixed deposit and an NBFC fixed deposit are not the same product, and they follow different rule books.

• Bank FDs follow their own RBI framework for banks and carry DICGC deposit insurance up to ₹5 lakh per depositor. The rules described here do not apply to bank FDs.
• NBFC-D fixed deposits are public deposits accepted by deposit-taking non-banking finance companies, governed by the RBI Master Direction on NBFC public deposits. The three buckets above are the new rights effective from 1 January 2025.

Before you invest, confirm the company is a deposit-taking NBFC allowed to accept public deposits. Many finance companies cannot take deposits at all.

RBI also tightened the rule on maturity reminders. Earlier, an NBFC had to tell you that your deposit was about to mature two months before the maturity date. Under the new rules, the NBFC must inform you at least 14 days before maturity.

This is a shorter window, so the lesson is simple. Do not wait for the reminder. A missed maturity can mean your money rolls over or sits idle, so track the date yourself and decide in advance whether to renew or withdraw.

1. Check your bucket. Use the table above to confirm which rule applies and how much you can take out.
2. Write to the NBFC. Send a written request stating your deposit account number, the amount, and your reason, especially for an emergency or critical-illness withdrawal.
3. Attach proof for emergencies. For a critical-illness or natural-calamity claim, attach supporting documents such as hospital papers, so the full-amount rule can apply.
4. Keep records. Save a copy of your request, your deposit receipt, and any acknowledgement, and note the date you applied.
5. Follow up in writing. If you do not hear back, send a written reminder and keep proof of delivery.

Because an NBFC is a private company and not a government body, the RTI Act does not apply to it directly. The RTI Act 2005 only helps when a public authority is involved, for example if you later complain to a regulator about how your case was handled.

If the NBFC delays or refuses a valid premature withdrawal, do not give up.

• Send a formal written complaint to the NBFC and ask for a written reply. Quote the RBI rule effective 1 January 2025 and your bucket.
• Escalate to the RBI Ombudsman. If the NBFC does not resolve your complaint or you are not satisfied, you can escalate to the RBI Ombudsman for non-banking finance companies. This is the main route for NBFC depositors, since the RTI route is not available against a private NBFC.
• Not sure who handles your issue? See our guide on which regulator to complain to to pick the right authority.

When a public authority is involved, The RTI Playbook walks you through the process. You may also want to read about RBI e-mandate rules if you set up recurring auto-debits.

Only in two cases. If your deposit is up to ₹10,000 and you ask within three months, you get the full amount back without interest. If you face a critical illness or an emergency, the NBFC must return 100 percent of the deposit within the first three months, whatever the size. In all other cases you are limited to 50 percent of the principal or ₹5 lakh, whichever is lower.

For the small-deposit bucket up to ₹10,000 and the standard 50 percent or ₹5 lakh bucket, no interest is paid on the early-exit amount within the first three months. For an emergency or critical-illness withdrawal, the full deposit is returned and the interest treatment follows the NBFC rules.

No. These rules apply only to deposit-taking NBFCs, often called NBFC-D. Bank fixed deposits follow a separate RBI framework for banks and are covered by DICGC deposit insurance up to ₹5 lakh. Always check whether your deposit is with a bank or an NBFC.

Earlier an NBFC had to inform you two months before your deposit matured. From 1 January 2025, the notice period is at least 14 days before maturity. Because the window is shorter, you should track your own maturity date and not rely only on the reminder.

RBI allows the full deposit to be returned in the first three months for critical illness or emergencies such as medical expenses or a natural calamity. Keep supporting documents ready, for example hospital records, so the NBFC can apply the full-amount rule to your case.

First, send a written complaint to the NBFC quoting the RBI rule effective 1 January 2025 and your bucket. If it is not resolved, escalate to the RBI Ombudsman for non-banking finance companies. You can also use our which regulator to complain to guide. For drafting help when a public authority is involved, try the AI RTI Drafter.

• RBI, Master Direction on NBFC public deposits, amended August 2024, effective 1 January 2025 (premature withdrawal and 14-day maturity notice rules).
• RBI rules on deposit-taking NBFCs (NBFC-D) and treatment of public deposits, effective 1 January 2025.