Banking and Financial Awareness: Important Points on Bank Deposits and Banking Matters

Bank Deposits and Banking Matters
  • Important Points on Bank Deposits: Here in this post we will discuss some important questions regarding Bank Deposits.

Important Points in Bank Deposits and Banking Matters

  • Banks can accept interest-free deposits only in current account.

  • Each bank will have to offer a uniform interest rate on savings bank deposits up to Rs.1 lakh.

  • A bank may provide differential rates of interest in savings account above Rs 1 lakh.

  • Differential rates of interest on term deposits: Differential rates of interest can be paid on single term deposits of Rs.15 lakh and above

  • Differential rate of interest on NRE  deposits: Banks are permitted to offer differential rates of interest on NRE term deposits as in the case of domestic term deposits of Rs.15 lakh and above.

  • Banks can pay interest on savings bank accounts at quarterly or longer rests (not at lesser interval ).

  • Interest on savings bank accounts and term deposit by scheduled commercial banks is calculated on a daily product basis.

Donations by Banks

For Profit Making Banks: Profit making banks may make donations during a financial year, aggregating up to one percent of the published profit of the bank for the previous year.

For Loss Making Banks: loss making banks can make donations up to Rs.5 lakh only in a financial year.

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