The Banking Institutions had hit the rock-bottom after the behemoth which is the Indian Financial Machinery was plummeted owing to the dreadful impact of the Pandemic situation which brought about tremendous damage and negativity in the investment environment of the country which was damaged owing to the closure in economic activities, temporary stoppage in business transactions and other negativities which hit the functioning criteria of the country’s economic scenario. However, the process of economic recovery has been initiated with the banking institutions taking measures to engage borrowers to interact with the public financing institutions and improve the social relationships between the two entities. The establishment of peaceful cohesion between the existing financial variables, determination of a credit amount that would suit the needs of the borrower, and exhaustively utilize a resource that would help in bringing about an improvement in the consumption of resources facilitates the overall growth and development market in the country.
Due to this massive surge in financial operations of banking institutions, some changes have been noticed in their regular activities like increasing Interest Rates on Fixed Deposits up to 7.5%. The banks are offering a variety of interest rates ranging from 2.5% to 7.5%. This surge in the interest rates has garnered additional confidence among the investors and has thereby encouraged them to regulate monetary amounts in the financial market which would subsequently help in generating liquidity and financial leverage in the economic space. An increase in interest rates has ushered in an era of economic recovery for India where the borrowers would be inclined to have more money as Fixed Deposits with the public and private financing commercial banking institutions.
The banks offering high-interest rates on Fixed Deposits include Jana Finance Bank, Utkarsh Small Finance Bank, and Suryoday Small Finance Bank.