The Reserve Bank yesterday made a few amendments to its Master Direction on the Scheme.

The modifications, it said, have been made in consultation with the government to make the Scheme 'more customer-friendly'.

The rate of interest on the deposits will be decided by government and notified by the RBI from time to time.

The current rate of interest as notified by the government on medium term deposit is 2.25 percent per annum and on long term deposit is 2.50 percent per annum.

However, there will be penalty in the 'form of lower rate of interest for premature withdrawals' depending upon the actual period for which the deposit has run.

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