The Reserve Bank of India (RBI) plays a crucial role in shaping the financial landscape of the country. Through its monetary policies, the RBI influences key economic parameters, including interest rates on loans and deposits. Fixed deposits (FDs) are among the most popular investment options in India, offering guaranteed returns and low risk. However, the interest rates on FDs are directly impacted by the RBI’s monetary policies, making it essential for investors to understand this relationship. This article explores how RBI’s decisions affect FD interest rates and how aspects like the fixed deposit TDS rate come into play.

Understanding RBI’s monetary policies

The RBI employs monetary policies to manage inflation, stabilise the currency, and promote economic growth. These policies involve adjusting the repo rate, reverse repo rate, and other key parameters to control the money supply in the economy. When the RBI modifies these rates, it has a cascading effect … Read More