Dinesh Khara, chairman of the country’s largest state-run bank SBI, has described the hike in interest rates by the RBI as a step in the right direction. He called it good for the person depositing money in FD and also indicated to increase the interest rate of FD.
Talking to the media, Khara said that “As far as the new FDs are concerned, they will be according to the new interest rate. We have increased the interest rates of some FD schemes in the past as well. At present, if you make an FD in SBI for 12 to 24 months, then you get an interest rate of 5.10 percent. On the other hand, if you make an FD with a tenure of between 3-4 years, then you will get an interest of 5.45 percent.
He further said that hike in interest rates is good for FD investors while bad for loan borrowers. Loans are directly linked to interest rates as interest rates rise. Its direct effect is visible on the interest rates of the loan.
It is necessary to control inflation: Khara said that it is necessary to control inflation to maintain growth in the current times and this is a step in the right direction. On further hike in interest rates by RBI, Khara said that nothing can be said about it at the moment.
On linking the RuPay credit card with UPI on behalf of RBI, Khara said that it is a good decision. We expect MasterCard and Visa credit cards to be added soon.
Let us tell you, on Wednesday (9-June-2022), the RBI had increased the repo rate by 0.5 percent in view of the rising inflation in the country. During this period, the inflation rate for FY23 was also increased by 1 percent by the RBI.