Missed RD Instalments Can Lead to Account Closure

Missing one recurring deposit instalment does not immediately close the account, but banks charge a penalty of about Rs 1.50 per Rs 100 of the monthly instalment for each month of delay. Depositors typically get a grace period of up to five or six consecutive missed payments. Failure to pay for six consecutive months can result in the RD being classified as irregular and closed prematurely, with lower maturity proceeds.