Here’s why they might be on the decline:
● RBI’s Monetary Policy: The Reserve Bank of India (RBI) controls repo rates. A cut in repo
rates often leads banks to reduce FD and RD interest rates.
● Inflation: Lower inflation can reduce FD and RD interest rates to maintain real returns.
● Demand and Supply: Banks might decrease rates when there’s a surplus of funds.
● Economic Environment: Banks often cut rates to boost lending in a slow-growing economy.
● Global Factors: Global economic events can influence domestic interest rates.
In essence, the FD and RD interest rates reflect not just bank policies but are a result of broader
economic factors. Monitoring these can offer insights into possible future adjustments.