The All India Bank Depositors' Association (AIBDA) has petitioned the Reserve Bank of India (RBI) to get banks to suspend premature fixed deposit withdrawal penalties during COVID times. Current FD rates hover around 3.5-5 percent per annum, but penalties continue to be as high as 0.5-1 percent. This is unfair to small depositors who might need to break their FDs due to loss of employment, and health or other unexpected expenses during this period, the association said. AIBDA has proposed that penalties be linked to FD return or value, with concessional structure or waiver for smaller amounts. Stiff penalties and lower returns could push retail depositors towards riskier instruments, it stated.