Reserve bank of India will ask for the banks to give interest to saving account holder on monthly basis. Now the interest amount is credited on quarterly basis. This will help the account holder to get the interest on time as well as easy for calculations.
RBI wants to maximize the number of saving account in the country and for so, it did many fruitful announcements for the account holder. These are two main announcements which increased the number of saving account in the country.
- Calculation of interest for saving account on daily basis
- Banks are free to fix rate of interest on saving account.
Now this third announcement which is likely to be done on Tuesday 29 January 2013 is also good for the saving account holders.
It helps to the economy too. In India there is a practice to keep the money in hand compare to cash at bank. Cash at bank helps the economy to grow as it is an investment whereas cash in hand is only a saving with which economy doesn’t get benefit. So RBI wants to move the money from the house to the banks.
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