BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Indian Bank’s Association
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the bank concerned
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RBI
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Finance Ministry
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Detailed explanation-1: -Detailed Solution. The RBI is accountable to manage the interest rates on the the saving accounts in all nationalized commercial banks in India. RBI is mainly accountable to manage the monetary system of the country and it conducts various functions for the same.
Detailed explanation-2: -Interest rates are determined, in large part, by central banks who actively commit to maintaining a target interest rate. They do so by intervening directly in the open market through open market operations (OMO), buying or selling Treasury securities to influence short-term rates.
Detailed explanation-3: -The RBI regulation states that the interest rate on your savings account is determined daily based on your closing balance. Your bank will credit your account with the interest earned on a semi-annual or quarterly basis, depending on the type of savings account you have and the bank’s policy.
Detailed explanation-4: -The key factors that help decide term deposit interest rates are: The Reserve Bank cash rate. Competition in the market. The investment length (or ‘term’)
Detailed explanation-5: -Reserve Bank of India is the central bank of India. Hence, the bank rate is determined by RBI.