Which of the following interest rates are not fixed by RBI and left to the discretion of the Bank concerned?begin{enumerate}item Saving Bank depositsitem DRI Advancesitem Ceilling rates on FCNR/NRE deposit accountsitem Ceiling rates on export credit facilitiesend{enumerate}

BANKING GENERAL KNOWLEDGE

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

Which of the following interest rates are not fixed by RBI and left to the discretion of the Bank concerned?

A	1 and 4
B	1 and 3
C	Only 1
D	Only 4

Explanation:

Detailed explanation-1: -The current Repo Rate as fixed by the RBI is 5.90%. After the latest hike in the repo rate on 7 December 2022, the Marginal Standing Facility (MSF) Rate rose to 6.15% from 5.65% and currently stands at 6.50%.

Detailed explanation-2: -With effect from October 18, 1994, RBI has deregulated the interest rates on advances above Rs. 2 lakh and the rates of interest on such advances are determined by the banks themselves subject to BPLR and Spread guidelines. For credit limits up to Rs. 2 lakh, banks should charge interest not exceeding their BPLR.

Detailed explanation-3: -Bank of India offers FD interest rates of 3.00%-7.05% p.a. to regular citizens and 3.00%-7.55% p.a. to senior citizens on tenures ranging from 7 days to 10 years. The interest rate on Bank of India Tax Saving FDs is 6.00% p.a. for the general public and 6.75% p.a.

Detailed explanation-4: -The new FD rule is related to interest being paid on unclaimed or overdue FDs. As per the new rule, if a term deposit matures and proceeds are unpaid, the unclaimed amount will now earn a lesser interest rate.

There is 1 question to complete.