Breaking India State Business Entertainment Biography Lifestyle

FD interest rate cut: FD interest rates to be reduced, SBI chairman gave big hint

Sagar Patel

By Sagar Patel

Published on:

FD Interest May Decrease

High interest rates ranging from 7.5 to 9.5 per cent are currently charged on bank FDs in India. At commercial banks, FD interest rates are kept at a high level of 7-8 per cent. At the same time, small finance banks offer the highest interest of up to 9.5 per cent on FDs. Meanwhile, Dinesh Kumar Khara, chairman of the country’s largest bank SBI, has said something like this, indicating a huge cut in FD interest rates in the medium term.

State Bank of India (SBI) Chairman Dinesh Kumar Khara says deposit interest rates in the country are currently at their peak. Interest rates are expected to fall in the medium term.

Repo Rate May Change Soon

Dinesh Kumar Khara, chairman of government bank SBI, says there has been no change in the repo rate in the country for a long time. But the Reserve Bank of India (RBI) is now expected to ease interest rates from the third quarter (October-December) of the current financial year 2024-25. The reason for this is that there are signs that the level of inflation is coming down in the country.

However, when the Reserve Bank of India presented its bi-monthly monetary policy last week, it kept the repo rate stable for the eighth consecutive time. The Reserve Bank made this decision focusing on the country’s strong economic growth as well as inflation.

On this decision of the RBI, Dinesh Kumar Khara said, “We expect inflation to move towards the 4 per cent level in the third quarter starting October. Due to this possibility, it seems that this would be the right time for the RBI, when we can expect some reduction in the repo rate.

The world is also giving similar signals

Currently, central banks in many countries around the world have begun to change repo rates. Because of this, signs began to appear that inflation is going down. For example, the central banks of some of the advanced economies such as Switzerland, Sweden, Canada and the Euro Zone have started the rate reduction cycle during the year 2024. At the same time, expectations still persist that the US Federal Reserve United States reduces interest rates, although they are weaker than before.

Dinesh Kumar Khara said interest rates in the banking system are already more or less at their peak. In the future we will see some minor changes to this. However, last month, the SBI had increased the interest rates of its selected FDs by 0.75 per cent. The bank increased the interest rate on FD deposits from 46 days to 179 days by 0.75 per cent.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

Related Post

Leave a comment

x