Now you will get less interest on fixed deposits (FD) of banks. Axis Bank, Punjab National Bank (PNB), and Union Bank of India (UBI) have started it. All three have cut interest rates on deposits of various tenures.
The Reserve Bank of India (RBI) has decided to put the 2000 rupee note out of circulation. Due to this, more than one lakh crore rupees have come into the banks. Due to this banks are now reducing the interest on deposits. After the above three banks, many more banks can also cut FD rates in the coming times. Analysts say that the cleverness at this time is that if you get FD done now, then the banks will give only the current interest. In such a situation, you will continue to get the current interest even after the interest rates decrease further.
The meeting of the Monetary Policy Committee (MPC) of RBI is to be held next week. With inflation coming under the purview of RBI, it is expected that the repo rate will be kept constant at 6.5 percent. There was no change in this even in April. In such a situation, the bank can deduct the interest on the deposit in case of an excess amount.
Significantly, from May 2022 to January this year, the RBI increased the repo rate by 2.5 percent. Due to this, the interest rates on loans and deposits had increased rapidly. While 9.5 percent interest was being received on deposits, more than 8.5 percent interest is being charged on loans.
Axis Bank: On deposits of more than one year, five days, and less than 13 months, 6.80 percent interest is being given, which was earlier 7.10 percent. Deposits of more than 13 months and less than two years will get 7.10 percent interest, which was earlier 7.15 percent.
PNB: Paying 6.75 percent interest on one-year deposits, which was earlier 6.80 percent. Last month, it reduced the interest on deposits of 666 days from 7.25 percent to 7.05 percent.
Union Bank: The bank was paying 7.30 percent interest in November. Recently it has reduced it to 7 percent.
Since last year, there was a strong demand for loans from banks. It reached 17.5 percent in October 2022. However, it is now at 15.5 percent. To meet this loan, banks were continuously increasing the interest on deposits and it had reached 9.5 percent.
The total value of 2000 notes is currently 3.6 lakh crores. It is believed that even if 30 percent of this amount remains in the bank and the remaining amount is also withdrawn by the people, then more than one lakh crore cash will remain with the banks. Due to this banks will not face any liquidity problems in the future.