GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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regulated by RBI.
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regulated by Finance minister.
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regulated by Central Government.
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regulated by Sate Governments.
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Detailed explanation-1: -The Correct Answer is Reserve Bank of India(RBI). The banks mainly decided on the rate of interest they pay on a savings bank account. However, on 1 March 2003, the RBI (Reserve Bank of India) had controlled the interest rates on savings accounts and has since remained unchanged.
Detailed explanation-2: -d It is fixed by Reserve Bank of India. In 2011 RBI permitted the commercial banks to fix interest rate on saving account independently.
Detailed explanation-3: -Savings account rates are loosely linked to the rates the Fed sets. After the central bank raises its rate, financial institutions tend to pay more interest on high-yield savings accounts to stay competitive and attract deposits. The Fed’s two cuts in March 2020 had brought rates to a range of zero to 0.25 percent.