On which rate, RBI has recently deregulated the rates of interest to be provided by various banks to their depositors/customers with on their accounts.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Time deposit
B	Saving bank
C	Loan
D	Fixed deposit

Explanation:

Detailed explanation-1: -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-2: -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-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’.

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