New Delhi, Jan 12 (TIWN) Axis Bank, India's third-largest private sector bank, on Monday 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 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, a Bank official on Monday said  The new feature will be applicable on all new fixed deposits and recurring deposits. 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deposits booked for a tenure above 2 years, there will be nil premature penalty if the entire deposit is prematurely withdrawn post 15 months of booking.