Yes Bank introduced repo based term deposit
In the June policy review, the repo rate was increased by half a percent. At the same time, a month ago, the Reserve Bank increased the repo rates by 0.4 percent. That is, there has been a total increase of 0.9 percent in two months. At present, the repo rate has reached 4.9 percent.
Yes Bank today launched its Fixed Deposit (Fixed deposit) Introduced a new product for the customers. This new product of the bank is a special term deposit whose rates are given by the Reserve Bank (RBI).RBI) will be linked to the repo rates. According to Yes Bank, customers will get a chance to get better returns amidst increasing rates from this product. In fact, there are allegations against the banks that they take a long time to pass on the benefit of the rate hike by the Reserve Bank to the customers. Yes Bank ,Yes BankAccording to this new product, this complaint of customers will end forever. The Reserve Bank has increased its repo rates by 0.9 percent in the last two months. After which many banks have also increased their deposit rates from time to time.
What is the new product of Yes Bank
In one of its statements, Yes Bank has said that with its new product, customers will be able to get better returns on their fixed deposits as they will be linked to the repo rates, which will change the deposit rates in the same proportion with the change in repo rates. According to him, the tenure of this floating rate FD will be from 1 year to 3 years. According to Prashant Kumar, MD and CEO of the bank, the biggest advantage of this FD is that due to being linked to the repo rate, the rates of FD will automatically change with any increase by the Reserve Bank. And the bank or the customer will not have to do anything in this. Due to this, customers will also get the benefit of increase in rates immediately. The bank recently appointed Paytm Chief Business Officer Dheeraj Sanghi as the country head of its branch banking. Only after this the new product has been launched.
Repo rates expected to continue rising
Due to rising inflation, the Reserve Bank has increased the repo rate for the second consecutive month in its June policy review. In the June policy review, the repo rate was increased by half a percent. At the same time, a month ago, the Reserve Bank increased the repo rates by 0.4 percent. That is, there has been a total increase of 0.9 percent in two months. At present, the repo rate has reached 4.9 percent. At the same time, market experts have predicted that the Reserve Bank will continue to increase the repo rates and it is likely that the repo rate will reach 5.5 percent by the end of the year. With the repo rates continuing to rise, it is anticipated that deposit and loan rates may also continue to rise. According to Yes Bank, for this reason this product has been launched. Because in case of increase in rates, customers will get the benefit immediately.