BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed deposits above five years’ maturity
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Recurring deposits
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Savings bank
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Flexi Deposit scheme
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Detailed explanation-1: -The rate of interest charged by RBI while they repurchase the securities is called Repo Rate. The current Repo Rate as fixed by the RBI is 5.90%. The latest revision in the rates was made to mitigate the economic risks keeping the deteriorating economic situation in view.
Detailed explanation-2: -As a part of financial sector reforms, the Reserve Bank has deregulated interest rates on deposits, other than savings bank deposits. The interest rate on savings bank deposits has remained unchanged at 3.5 per cent per annum since March 1, 2003.
Detailed explanation-3: -There are two methods used to calculate interest on a Fixed Deposit: Simple Interest and Compound Interest. Banks may use both depending on the tenure and the amount of the deposit.