Nowadays, the Reserve Bank has given all banks complete freedom to determine the rules and interest rates for various deposits and fixed deposits. Therefore, a depositor should carefully study the interest rates and rules of different banks before making an investment decision.Although the Reserve Bank has given all banks freedom, it has also laid down some basic frameworks! Here, we will get acquainted with this framework.
Today, savers have access to a variety of deposit schemes beyond just banks. Yet, bank fixed deposits remain the most popular even now! In truth, bank depositors are the bank’s “lenders.” The depositors effectively lend money to the bank. However, the bank does not provide any guarantee for the loans it takes from depositors. In other words, the loans given by depositors are unsecured. If the bank fails, depositors can also incur losses....(To continue reading ,click open the magazine)