No premature encashment is permitted in the first year of deposit. The bank in the case of premature payment levies a penalty. The amount of penalty varies with deposit period and the date of premature encashment. No transfer is permitted during the 30 days preceding the date on which interest is due and in the last 90 days preceding the date of maturity. The value of assets deposited is also exempt from Wealth Tax.
Deposit is exempt from capital gains made through trading or redemption.
Rupee loan can be availed against the deposit as per the guidelines prescribed by the bank.