highlights
Withdrawal of 2000 rupee banknotes started on May 23, 2023.
Within a week, 14,000 crore rupees were deposited at SBI in the form of 2000 banknotes.
Due to the banks’ increased liquidity, there is no shortage of money to lend them.
New Delhi. Can the RBI’s announcement to withdraw the Rs 2000 note affect your FD returns? Most people will only answer this question with “No”. But experts have a different opinion on this. They believe that because of this, there is an opportunity to lower FD’s interest rate. Also, at the RBI Monetary Policy Committee meeting, the status quo on interest rates may be maintained, which becomes an additional factor in lowering or not raising FD interest rates.
Experts believe that if they need to open a new FD, this work should be done before the MPC session. Tax and investment expert Jitendra Solanki said the withdrawal of Rs 2,000 notes has boosted liquidity at banks. To put it more simply, the banks now have enough money to lend. Because of this, he will now avoid people holding money by offering FD at a high interest rate. In addition, after the RBI put the brakes on interest rates, there is no sign of a rise in yields anytime soon.
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Complete the FD before the MPC meeting
Another investment expert, Karthik Zaveri, also agrees with the above and says if anyone wants to have an FD completed then they should have it completed before the MPC meeting (by June 6-8). He says the MPC is likely to either freeze or cut interest rates at the next meeting. He said this is a signal to the banks. With the withdrawal of 2000 bills, the huge amount on deposit in the banks and the RBI lowering the repo rate, both of these factors combine to lower FDs interest rates in the times to come.
SBI data
The Rs 2,000 banknotes officially began to be paid out on May 23. A week later, Dinesh Khara, head of the country’s largest bank SBI, presented some figures on this. He had stated how many 2000 bills were exchanged and how many were deposited. The surprising thing was that the bank received Rs 14,000 crore worth of Rs 2000 notes within a week. At the same time, only 3,000 crore rupees worth of banknotes were exchanged. That is, instead of exchanging 2000 bills at banks, people deposit them. Because of this, the banks now have enough money to lend.
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Tags: Bank FD, Business News in Hindi, earn money, fixed deposits, investment and return
FIRST RELEASED : June 5, 2023 at 9:35 am IST
