This decision of the Reserve Bank will also cause loss to a certain class. People who do not have any loan running and invest in FDs will have to bear the loss due to this decision. Actually, while the interest rates of loans decrease due to the reduction in repo rate, on the other hand the bank also reduces the interest rates given on FDs.
RBI Repo Rate: The Reserve Bank of India has finally announced a cut in interest rates after 5 years. RBI Governor Sanjay Malhotra on Friday announced a cut in the repo rate by 0.25 percent. The Reserve Bank last cut the repo rate by 0.40 percent in May 2020. Let us tell you that, just as common people take loans from banks for their needs, banks also take loans from RBI for their needs. The interest rate at which RBI gives loans to banks is called repo rate.
FD interest rates will also fall after the repo rate is reduced
After the Reserve Bank reduces the repo rate, if banks get cheaper loans, then banks will also give cheaper loans to their customers. This will have a direct impact on all loans including home loans, car loans and the interest rates of all loans will be reduced. Due to the loan being cheaper, the monthly EMI of the people will also be reduced and crores of people will benefit from this. However, this decision of the Reserve Bank will also harm a section. People who do not have any loan running and invest in FD will have to bear the loss of this decision. Actually, while the interest rates of the loan decrease due to the reduction in the repo rate, on the other hand the bank also reduces the interest rates given on FD.
Get FD done before the interest rates decrease
After the repo rate is reduced by the Reserve Bank of India, now gradually all the banks will reduce the interest rates of the loan. Along with this, all the banks will also start reducing the interest rates of FD. In such a situation, if you are planning to do FD, then go to the banks as soon as possible and get FD done. If you take more time, then the banks will reduce the interest rates of FD and you will not get the bumper interest being given on FD right now. Let us tell you that right now the general customers are getting a maximum interest of up to 7.30 percent on FD, while senior citizens are getting a maximum interest of up to 7.80 percent.
