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FD Interest Rates : Good news for those who want to invest in FD.. Banks will increase interest rates soon..

FD Interest Rates : This is good news for those who want to invest in fixed deposits. Banks will soon increase interest rates on multiple tenures. Read the following article for complete details regarding this.

FD Interest Rates : The decision taken by Reserve Bank of India (RBI) on Incremental Cash Reserve Ratio (I-CRR) measurement will reduce liquidity in the banking system. With this, banks will increase the interest rate on fixed deposits to meet the high credit demand in the coming period. Especially keeping in mind the festive season, interest rates on selective tenure FDs are likely to increase to meet the credit demand.

The RBI has asked banks to maintain a cash reserve ratio (I-CRR) of 10 per cent on net demand and time liabilities (NDTL) between May 19, 2023 and July 28, 2023. Creditors are advised to maintain ICRR for a fortnight from August 12.

According to experts, banks will take into account the size of increase in deposit rates after waiting for a fortnight to assess the liquidity situation and demand for credit. They said the hike in deposit rates could be in the range of 25 to 50 basis points (bps). That means it can increase from 0.25 percent to 0.50 percent.

India Ratings and Research Director (Core Analytical Group) Soumyajit Neogi said the recovery in credit demand after a long time has intensified the competitive dynamics in the deposit market. This increase may be in the next two to three months.

Anil Gupta, Senior Vice President, Co Group Head – Financial Sector Ratings, ICRA Ratings said, “Banks can initially raise deposits by raising bulk deposits or issuing certificates of deposit (CDs).

Bulk deposit rates will rise in the short-term before banks start raising retail deposit rates to boost deposits, he said, or increase issuance of certificates of deposit. There may be an increase of 25-30 basis points in rates on bulk deposits and CD rates.

RBI Governor Shaktikanta Das on August 10 announced the monetary policy of Rs. He said the I-CRR was purely a temporary measure to manage the liquidity overhang arising from the return of the 2,000 notes to the banking system. On May 19, RBI announced that Rs.2000 notes will be withdrawn from circulation. As on May 19, the total value of Rs 2000 notes in circulation is Rs 3.56 lakh crore. As on July 31, RBI has Rs. 3.14 lakh crore worth Rs. 2000 notes i.e. 88 percent returned. Of this, 87 percent was in the form of deposits, while the remaining 13 percent was converted into notes of other denominations.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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