Nearly all major banks in the country
have cut interest rates on deposits due to large cuts in policy rates by RBI
monetary policy in the last few months. The FD interest rates of many banks have
come down to a minimum level of 10 years. Due to this, the attraction of
investment deposit fix deposit (FD), which is very popular among Indians, is
now decreasing.
In such a situation, investors are
looking towards small finance banks to get higher returns. Small finance banks
are still offering 8% interest rate on FD. These attractive interest rates
attract investors, but they also have insecurity about small finance banks. Let
us know how safe it is to invest in investment schemes of small finance banks.
Investors feel that when large banks
are not offering high-interest rates, what is the reason that small finance
banks are offering a higher interest rate. It is an important to know here that
when large banks have heavy liquidity, they are less inclined to get more
deposits. This does not apply to small finance banks. Small finance banks offer
higher interest rates on fixed deposits than large banks, as they want to
attract more customers.
As far as fixed deposits are
concerned, investors should not invest all their capital in a single bank.
Investors should invest their capital in different small finance banks.
Investors should know that up to 5 lakh in the bank is insured under the
Deposit Insurance Program of DICGC. That is, it is safe to invest up to five
lakh capital in a bank.
Small finance banks are classified by
RBI as scheduled banks, just like public sector banks and private sector banks.
Hence small finance banks are directly regulated by the Reserve Bank of India.
In small finance banks, the amount of more than five lakhs is as safe as that
of government banks and private sector banks.
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