There are two conditions under which a depositor may be allowed to get the full amount of his deposit back within three months of making the deposit.
The first condition is regarding small deposits – deposits of Rs 10,000 or less – for such small deposits you will get your entire deposit refunded without any hassle.
For other deposits, there are certain conditions that need to be met to get the full refund i.e., there must be a serious illness as the reason for early withdrawal before the expiry of three months of the deposit. The serious illnesses considered follow the definition provided by the Insurance Regulatory and Development Authority of India. This provides clarity on which illnesses are considered serious illnesses and results in fewer disputes with NBFCs. If these conditions are met, the depositor can get back 100% of the amount held as deposit, but importantly, the amount is returned without any interest.
