Axis Bank has introduced a new security feature called “Lock FD” that prevents premature closure of fixed deposits through digital channels, building upon the bank’s existing digital authentication infrastructure. The feature requires customers to visit a physical branch location for early withdrawal of their fixed deposits rather than allowing closure through mobile or internet banking platforms.
The Lock FD capability is accessible through Axis Bank’s mobile application “Open” as well as at all branch locations. Once activated, it blocks the ability to prematurely close fixed deposits via digital channels, requiring in-person identity verification at a branch for early withdrawals. The mechanism adds an additional security layer for customers who may be less comfortable with digital banking, particularly relevant as India continues to strengthen its banking authentication requirements.
“At Axis Bank, we have been continuously investing in digital-first proposition that focusses on secure and seamless banking experiences. In this endeavour, we are excited to introduce the ‘Lock FD’ feature which empowers customers to protect their term deposits from unauthorized digital access,” said Sameer Shetty, Group Executive of Digital Business, Transformation & Strategic Programs at Axis Bank.
The security feature works by implementing a complete restriction on digital premature closures while maintaining standard maturity procedures. When customers need to close a fixed deposit before its maturity date, they must complete the transaction at a branch where staff can verify their identity through established protocols, similar to the multi-factor authentication approaches being implemented across India’s financial sector.
The Lock FD system supports broader industry efforts to enhance security measures around digital banking services while maintaining accessibility for customers who prefer traditional banking channels. The development comes as Indian financial institutions increasingly adopt sophisticated authentication methods, including biometric verification systems and multi-factor authentication protocols. The feature provides particular value for customers who maintain substantial fixed deposits and wish to implement additional safeguards against unauthorized access.
Sources: NewsBytes, Passionate In Marketing, NewsBytes, MediaBrief
