RBI’s decision will benefit those who put money in FD, but can increase the burden on those taking home loans

RBI Monetary Policy: RBI has not increased the policy rate. But, the CRR (Cash Reserve Ratio) of the banks has been asked to increase to the level of pre-epidemic level. If this happens, it will directly affect the common people.

Reserve Bank of India Governor Shaktikanta Das has given his verdict after a three-day meeting. By the way, the RBI has not increased the policy rate. But, the CRR (Cash Reserve Ratio) of the banks has been asked to increase to the level of pre-epidemic level. This means that liquidity will decrease with banks. In such a situation, there will be pressure on them to increase the interest rates. Experts say that this step will save less funds on hand to lend to banks. In this way they will increase the interest rates on the loan. But the condition is that they see strong demand from the borrowers.

What is the decision of RBI

RBI has announced that it is preparing to increase the CRR from 3 per cent to 4 per cent in the next four months. This increase in CRR will happen in two phases.

In the first phase, the CRR will be increased to 3.5 percent in March 27, 2021. In the second phase on 22 May 2021, this rate will increase to 4 percent.

Let us tell you that between February 2013 to January 2020, CRR has been at the level of 4 percent. The Reserve Bank now wants to bring this level back to this level again.

There will be a direct impact on those who get FD

The Reserve Bank of India has indicated interest rates to increase in the coming days after the policy review. This can increase the tension for the borrowers. But there is good news for those who invest in fixed deposits. Because the interest rates on fixed deposits have been steadily decreasing for the past few months.

Experts say that senior citizens suffer the most due to reduction in interest rates on fixed deposits. Because they depend on this interest for their daily expenses.

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Home, auto and personal loan rates may increase

Experts say that if the CRR (Cash Reserve Ratio) increases in the coming days, then it will decrease the liquidity of the banks. In such a situation, banks can further increase the interest on home, auto, personal, education loans.