NEW DELHI: Ahead of the Budget, the Indian Banks' Association (IBA) has made a fresh pitch for reducing the lock-in period for fixed deposits (FDs) to be eligible for tax breaks from the current five years to three so that they are able to compete more favourably with other products.
"As compared to other financial products (such as ELSS) available in the market, the tax-saver fixed deposit (FD) has become less attractive and if the lock-in period is reduced this would make the product more attractive and provide more funds to the banks," the IBA has said in a proposal submitted to the finance ministry.
