BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed deposits above 5 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: -Deregulation of interest rates was intended to strengthen the competitive forces, improve allocative efficiency of resources and strengthen the transmission of monetary policy. The process of deregulation of interest rates, which began in the early 1990s, was largely completed by October 1997.
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: -As indicated in the second quarter review of Monetary Policy 2010-11 on November 2, 2010, the RBI released on its website a discussion paper on ‘Deregulation of savings bank deposit interest rate’.
Detailed explanation-4: -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.