Performance of Banks on Govt schemes to be monitored for continuation as Agency Banks
May 10, 2021
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Scheduled private sector banks (PvSBs) intending to handle government agency business as agency banks of the Reserve Bank of India (RBI) can do so upon execution of an agreement with the latter.
This will be subject to the condition that the concerned bank is not under Prompt Corrective Action (PCA) framework or moratorium at the time of making the application or signing of the agreement with RBI.
Revised guidelines
The central bank on Monday issued “revised guidelines/ framework for authorising Scheduled PvSBs as agency banks of RBI for conduct of government business attracting agency commission” following lifting of the embargo put in place from September 2012 by Department of Financial Services (DFS), Ministry of Finance (MoF) on further allocation of Government business to private sector banks.
Launched by the government of India, Sukanya Samriddhi Yojana is part of the “Beti Bachao, Beti Padhao Yojana” which is meant for the welfare of the girl child. If someone invests in the Sukanya Samriddhi scheme at the Post office, he/she will get a rate of interest of 7.6 percent per annum calculated on yearly basis.
You may actually be dissaving by putting money in savings instruments
By IANS |
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Piggy bank.. Image Source: IANS News
Mumbai, April 16 : You may not have noticed it but the actual interest rate that you are getting on your bank deposits and investments in small savings schemes has fallen into the negative territory.
This means that the return on investments is not yielding any positive value but only covering for higher inflation and savings may actually be falling in their real value.
The situation has emerged in wake of a sharp fall in deposit rates due to aggressive rate cuts by banks in response to the Reserve Bank of India s (RBI) reduction in the benchmark rates, coupled with a rise in consumer prices. What this meant is that the real interest rate (actual return that you get on your savings minus inflation) has been pulled into the negative territory, disincentivising savings.
In less than 24 hours, Centre withdraws order cutting interest rates on small savings schemes
In less than 24 hours, Centre withdraws order cutting interest rates on small savings schemes
On Wednesday, the Finance Ministry had announced a sharp cut in interest rates for small savings schemes for the first quarter of the financial year 2021-22. This order has now been withdrawn.
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UPDATED: April 1, 2021 19:32 IST
The Centre on Thursday withdrew its order cutting interest rates for small savings schemes for Q1 of FY2021-22 (Photo Credits: Pixabay)
HIGHLIGHTS
Interest rates of small savings schemes of GOI shall continue to be at rates that prevailed as of March 2021: FM
Centre rolls back interest rate cut order on PPF, other small savings schemes
The government on Wednesday reduced the interest on the PPF scheme to 6.4 per cent for the April-June quarter from 7.1 per cent in the January-March period
Ashutosh Kumar | April 1, 2021 | Updated 08:30 IST
Finance Minister Nirmala Sitharaman on Thursday, March 31, announced that the government has taken back its interest rates cut order on small savings schemes
Facing a severe social media backlash over the interest rate cuts in small savings schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana, senior citizen savings scheme, current deposit, and a host of other such schemes on March 31, the finance ministry has rolled back the decision.