The interest rates on FDs at these two major banks have just been raised, so you can anticipate how much your money will grow.
With the Reserve Bank of India’s rise of the benchmark interest rate by 0.50 percentage points, ICICI Bank and Punjab National Bank have followed suit by raising their lending rates (RBI). On Friday, the Reserve Bank of India increased the benchmark repo rate by 0.50 percentage points, reaching a new three-year high of 5.40 percent. PTI reports that in a recent statement, ICICI Bank said that the RBI policy rate is the basis for the ICICI Bank External Standard Lending Rate (EBLR).
» Be Aware Of The Recent Price Increases
The bank has announced that the I-EBLR rate would increase to 9.10% each year, with payments due on the 1st of each month. As of 5 August 2022, it’s in effect. For the benefit of the public sector Following the Reserve Bank of India’s (RBI’s) decision to raise the repo rate, Punjab National Bank has announced that, beginning on August 8, 2022, it would be increasing its Repo Related Lending Rate (RLLR) from 7.40% to 7.90%. To be. ICICI Bank has increased its MCLR (based on the marginal cost of funds) by 0.15 percent this month across the board.
» Increase In The Repo Rate Was A Direct Result Of Rising Inflation
On the margins of the release of the Monetary Policy Review (MPC), Reserve Bank of India Governor Shaktikanta Das remarked on Friday that inflation is now unacceptably high at approximately 7 percent. This is why the Reserve Bank of India has decided to increase interest rates by 0.50%. Economists and experts alike believe the Reserve Bank’s Monetary Policy Committee (MPC) will keep raising interest rates until the current fiscal year’s policy rate is stable. Not reaching the ‘neutral rate’ of 6%-6%.5% before the end of 2015.
» Rate Hikes By Other Banks Are Possible In The Near Future
The ICICI Bank and the Punjab National Bank have just revised their rates, and other banks may follow suit. Customers, it is predicted, would need to be ready to pay high EMIs and loan rates in the near future. Inflation may continue to run higher than expected until the start of the 2023-24 fiscal year, according to experts. That means another 0.75 percent growth by March.