Cosmos Bank offers interest facility for accounts opened under RERA
The Cosmos Co-operative Bank has started a facility in which after maintaining a certain balance in the accounts opened under RERA, the remaining amount is transferred to flexi-fixed account. This will fetch interest applicable to savings account (presently at 4%) to the builders and developers on their balance in flexi-fixed account, informed the bank’s Chairman, CA Milind Kale. A substantial amount is lying idle in the accounts opened under the Real Estate Regulation Act – RERA.
As per RERA, it is mandatory for builders and developers to open a separate escrow account in the scheduled bank for every project and 70% of total project amount should be credited in it. No interest was received on this substantial balance in the account till now. As per the press release issued by Cosmos Bank, due to this facility the concerned account holders will be able to receive interest to some extent on their amount with the Bank.