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At present, banks in India are giving high interest of 7.5 to 9.5 percent on FD. While the interest rates on FD in commercial banks remain at a high level of 7 to 8 percent, small finance banks are giving the highest interest of up to 9.5 percent on FD. Meanwhile, Dinesh Kumar Khara, chairman of the country's largest bank SBI, has said something which indicates a huge cut in interest rates on FD in the mid-term.

State Bank of India (SBI) Chairman Dinesh Kumar Khara says that at present the interest rates on deposits in the country are at their peak. Interest rates are expected to come down in the mid-term.

Repo rate may change soon

Dinesh Kumar Khara, chairman of state-run bank SBI, says that there has been no change in the repo rate in the country for a long time. But now the Reserve Bank of India (RBI) is expected to soften interest rates from the third quarter (October-December) of the current financial year 2024-25. The reason for this is the signs of inflation coming down in the country.

By the way, last week when the Reserve Bank of India presented its bi-monthly monetary policy, it kept the repo rate stable for the 8th consecutive time. The Reserve Bank took this decision while focusing on the country's strong economic growth as well as inflation.

On this decision of RBI, Dinesh Kumar Khara said, "We expect inflation to rise towards 4 percent in the third quarter starting from October. Due to this possibility, it seems that this will be the right time for RBI when we can expect some reduction in repo rate from it."

The world is also giving similar signals

At this time, central banks in many countries of the world have also started changing the repo rate. Due to this, signs of inflation coming down have started appearing there. For example, the central banks of some of the advanced economies like Switzerland, Sweden, Canada and Eurozone have started the cycle of reducing rates during the year 2024. At the same time, the hopes of reduction in interest rates by the US Federal Reserve still remain, although they have weakened earlier.

Dinesh Kumar Khara said that the interest rates in the banking system are more or less at their peak already. Going forward, we will see some minor changes in it. By the way, just last month, SBI had increased the interest rates on its selected FDs by up to 0.75 percent. The bank had increased the interest rate on FD deposits of 46-179 days by 0.75 percent.