After RBI order, people are withdrawing money from savings account, know where they are investing
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RBI: Country’s top bank Reserve Bank of India (Reserve Bank of India) recently a monetary policy review meeting was organized. RBI did not make any change in the repo rate in this meeting. However, even after this, banks are giving loans to customers at higher rates.
Due to high interest rates in banks, people now keep their money in savings accounts (Saving Bank Account) or current account (Current Bank Account) are reluctant to put in. Bank customers are withdrawing their money from their accounts and investing it in fixed deposits. This has led to a direct reduction in the amount deposited in current and savings accounts.
Industry body FICCI and Indian Banks Association (IBAI)IBAA survey report released by ) states that sectors like infrastructure, textiles and chemicals have seen a steady increase in long-term loan demand. Food processing and metals, iron and steel have also seen a rise in long-term loan distribution in the last six months.
According to the 17th round of FICCI-IBA survey, an increase in credit flow is being seen in infrastructure. 67 percent of the participants in the survey have indicated an increase in long-term debt, whereas in the previous round this figure was 57 percent.
The survey said that the next six months may see an increase in debt in the non-food industry sector. About 42 percent of the participants surveyed expect that the increase in credit in the non-food industry will be more than 12 percent. Whereas in the last round, 36 percent had expressed this possibility. According to this, in view of high interest rates, people are inclined towards fixed deposits. In the current round of the survey, more than half of the participating banks (57 percent) reported a decline in the share of savings or current account deposits in total deposits. There has been a rise in fixed deposits.
Regarding asset quality, the survey said, 75 per cent of banks have reported a reduction in their non-performing asset (NPA) levels in the last six months, whereas 90 per cent of banks had reported so in the previous phase. It said that 90 percent of public sector banks have cited reduction in NPA level, while 80 percent of private sector banks have cited decline in NPA.
According to the survey, at the current stage about 54 percent of the banks feel that the gross NPA will remain between three-four percent in the next six months.
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