Cosmos Bank offers interest facility for accounts opened under RERA

PUNE: In accounts opened under the Real Estate Regulation Act - RERA - a substantial amount is lying idle without receiving any interest on it. Considering this situation, The Cosmos Co-operative Bank has started the 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.

As per RERA which came into effect in May 2017, it is mandatory for builders and developers to open a separate account in the scheduled bank for every project. It is expected that in this 'escrow' account, 70% of total project amount should be credited. 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.