Author: Niveum

Interest Dropped in Savings Account Dropped

For the first quarter of the new fiscal year, the government announced a 50-100 basis point reduction in modest savings rates. It was the second time in a year that interest rates on modest savings accounts had been reduced. 

Prior to this, the government has reduced modest savings program rates by 70-140 basis points for the April-June 2020-21 quarter. As a result of the reversal, the PPF interest rate will continue at 7.1 percent for the current quarter, rather than 6.4 percent.

Similarly, interest rates on National Savings Certificates and Kisan Vikas Patra would be 6.8% and 6.5 percent, respectively. Sukanya Samridhi Account Scheme would have the highest rate, at 7.6%, compared to 6.9% published on Wednesday.

Millions of depositors would have been harmed by the program cutbacks, which were announced at the same time as elections to four state legislatures and the union territory of Puducherry. According to sources, the administration has received authority from the Election Commission to examine interest rates on a regular basis.

Now Enjoy More Free Transactions in Your ATM Cards

In India, the majority of commercial and governmental banks now provide five free ATM transactions in cities and rural areas. In cities these transactions include financial and nonfinancial transactions as well. The Reserve Bank of India (RBI) has granted banks permission to raise fees for cash and non-cash ATM transactions over the free monthly limit. With effect from January 1, 2022, bank clients who exceed their monthly limit of free transactions will be charged a fee of 21 instead of 20 cents each transaction.

Banks are also authorized to boost interchange fees per transaction from $15 to $17 for financial transactions and from $5 to $6 for non-financial transactions in all centers starting August 1, 2021, according to the RBI circular.

Some private banks, on the other hand, give their clients unlimited free ATM transactions. IndusInd Bank and IDBI Bank are the two banks who are offering these benefits to their customers.