Context:
Axis Bank has launched a ‘Lock FD’ feature for safeguarding customers’ Fixed Deposits (FDs) from rising digital frauds by allowing them to restrict FD closures through digital means.
Objective
To enhance the security of fixed deposits (FDs) by restricting premature closure through digital platforms, thereby protecting customers from online fraud.
What are Fixed Deposits (FDs)?
A Fixed Deposit (FD) is a savings and investment instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. It’s one of the most popular low-risk investment options in India.
Key Features of ‘Lock FD’
- Security Layer: Once the ‘Lock FD’ option is enabled, FDs cannot be prematurely closed via internet or mobile banking.
- Branch-only Closure: Closure of such locked FDs requires physical branch visit, ensuring identity verification.
