RBI Gives Power to Banks to decide saving banks deposit interest rates Get Interest of 6 to 7% on Savings bank accounts
RBI Gives Power to Banks to decide saving banks deposit interest rates Get Interest of 6 to 7% on Savings bank accounts
Updated Wednesday, October 26, 2011
Tuesday
The savings bank deposit rates were regulated by the RBI.
Currently in India the savings bank rate is capped at 4 per cent.
Savings deposits comprise 24 per cent of all the deposits in the country.
About 86 per cent of these are held by households in India.
What is the meaning of Capped?
Capped = an upper limit; a ceiling: placed a cap on mortgage rates.
On Tuesday Reserve Bank of India liberalized the saving banks deposit interest rates.
What does it means?
This means that now banks will be free to decide their own interest rates.
Banks will have to offer uniform interest rate on savings bank deposits up to 1 lakh and differential interest rates for deposits over 1 lakh.
The RBI will also issue operational guidelines on savings bank deposit rate.
This is the good news for all saving bank account holders who save money and they do not get good returns as they do not afford to save in lakhs of Rupess or do the business on stock markets.
For the poor Indians this is good news for them.
Now the banks will compete with each other to get savings bank account holders in result they will offer more interest rates on your savings banks accounts.
Currently the savings bank account interest rates are fixed at 4% now they will go up to 7 or 8%
This will encourage everyone to save more money.
Because of this the rates of loans will get higher , let them pay more higher interest rates
poor people do not have money to buy cars so if rich person is paying more on loan interest let him pay more.
Why for their benefit we should get less interest on our savings bank accounts which is our hard earn money.
Updated Wednesday, October 26, 2011
Following the Reserve Bank of India’s move to deregulate savings deposit interest rate, Yes Bank, a private sector bank increased saving deposit rate to 6 per cent from 4 per cent.
Reality views by sm –
Tuesday, October 25, 2011
Tags – RBI Savings Bank Account Interest Rates
6 comments:
some good news at last:)
Great information as usual
Not a bad deal. Here in Europe and in North America, one is luckey to get, 0.25 to 0.50 % interest.
People here would jump for joy at even a 4 % return on their savings.
Take care,
Mike
a very good misinformation on loans...
Very informative and useful post .Thanks SM .Happy Diwali .God bless you sir ,one and all around you .
Renu,thanks.
A,thanks.
Mike,thanks.
Jon,thanks.
Veerubhai,thanks.