Categories: Top Stories

Banks can pay less on mature bulk FDS: RBI

Mumbai: In an effort to prevent businesses using banks for financial management, Bank of India’s reserve has allowed banks to offer lower than deposit deposits or deposit rates remained in FDS.
Given the excess liquidity in the system, short-term interest rates are very low, and banks offer risk free refunds.
For businesses that have cash deposits running to Crores, a refund of 3-4% (which is provided by most deposits), is a decent result for the short term.
Moving by RBI is expected to force a business to utilize their resources more productive or spread it in long-term deposits.
Circular has sparked speculation on social media that automatic updates deposits will still be affected.
However, the RBI source said that the round was not related to automatic updates at all.
Bankers also said that there was no intention to eliminate automatic updates because the bank could not ignore fixed instructions provided by the customer.
The RBI is likely to clarify that automatic updates and deposit updates that have passed time will continue as before.
In circulation revising its rules for the interests of mature fixed deposits, RBI on Friday said: “If deposit deposits (TD) maturity and results are not paid, the number left is not claimed by the bank will attract interest rates as applicable to a savings account or The level of interest contracted on TD maturity, which is lower “.
Previous banks were forced to provide a savings account level on mass deposits offered lower refunds than savings account rates.
In the case of a deposit that has passed time, the RBI has left it to the bank to the board they put a transparent policy.
This allows the bank to update a fixed deposit from the due date even if the customer delays approaching the bank.
Circular can also have an impact on a very small part of retail customers who have an account in the bank that the level of high savings account.
Some small financial banks and several private banks offer returns from 4% to 7% in savings accounts.

news2in

Recent Posts

44 ordered to attack the procession

Ludhiana: The police have submitted FIR to four identified and at least 40 unknown attackers…

3 years ago

Punjab: Police Reject conspiracy theory in the case of Deep Sidhu

Sonīpat / Ludhiana / Ambala: Actor Punjabi - Activist Activist Deep Sidhu, who died in…

3 years ago

Punjab: Hidden Strength Working Behind PM Narendra Modi, Arvind Kejriwal, said Rahul Gandhi

PATIALA / MANSA / BARNALA: Attacking Prime Minister Narendra Modi and AAP National Convener Kejriawal,…

3 years ago

BJP made AAP to endanger the Congress, said Ajay

Jalandhar: BJP and AAM AAM AADMI parties are one party, Secretary General of the Ajay…

3 years ago

Our job is to make Punjab No. 1 State: Meenakshi Lekhi

Ludhiana: Minister of Union Culture Meenakshi Lekhi while campaigning to support the BJP candidate from…

3 years ago

Feb 20 is an opportunity to change the destiny of Punjab and his children: Bhagwant Mann

Machhiwara (Ludhiana): AAM AAM AADMI Party (AAP) Head of Punjab Candidate and Members of Parliament…

3 years ago