One year back when the inflation was at 5 to 6% ,Banks offered upto 8.5% interest to the fixed deposits.It was quite understandable that many risk averse people invested in fixed deposit schemes of the banks.But now the inflation nears double digit meaning there is no appreciation for the money invested.Also ,investors may not be able to withdraw money without some deduction in some banks and invest in new schemes.
We have floating interest method for the home loans in which the EMI payable will be adjusted with respct to the new interest rates.Likewise,Can't banks introduce deposit schemes with floating interest rate w.r.t inflationay rates. i.e calculating 2% above inflation every month/week/qtrly. We may gain or lose at the end.But the money value is protected against the current inflation.
Will RBI consider and recommend this option???
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