What I can see from this quote is that there might be some other reason for the rejection. As we know, previously the proof of funds required last year were $11,824 and then later on in the mid of the year there was a change, where everyone received a notification of upgraded proof of funds requirement as per CIC i.e. $12164. If your sis has showed the proof of funds according to the previous record of $11,824 and further she did'nt had any sufficient balance in her saving bank account, as Nova Scotia demanded, that could be the reason of rejection. As according to the current data the POF has to be $12,164.
Further, FD can be shown as proof of funds and there is no reason to give a rejection for maintaining an FD, which again we all know is encashable as and when required. The only FDR'S which are not encashable are "TAX SAVER" FD's. These are the FD's which are fixed for complete 5 years and hence, cannot be encashed before time. Otherwise, all other FD's can be encashed at any time. So, I don't think, it is a case of worry if anybody is having the funds in the form of Fixed Deposits.
Regards,
Ritz.