Banking laws

hetalsangoi (Querist) 04 May 2013 This query is : Resolved
when bank reduces the interest rate when rbi reduce the rate? i want to know which name of the rate indicate that bank will reduce the interest rate to overdraft cash credit account as well as on term loan?

Follow Query

Report Abuse

ajay sethi (Expert) 04 May 2013
bank is not bound to reduce the rate on RBI reducing rate . each bank has its own costs of funds . unless deposit rate decline banks will find it difficult to reduce interest rates . if RBi reduces CRR of banks then they may pass on benefit to borrowers

Guest (Expert) 04 May 2013
When some bank reduces bank rate, that announces on which type of bank accounts how much rate is reduced. Normally overdraft/ CC accounts are not affected. Rates are reduced normally on home loans or vehicle loans to attract more customers to enhance business of the bank.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries