For depositors, the RBI has made a decision to offer their help so that they can get the interest which is given to them from the banks for the various deposits more regularly.
As per the statement of the monetary policy, the RBI today said, instead of the quarterly intervals, the banks have the authorization to pay the interest amount at a shorter time span.
As of right now, the banks tend to pay their customers, the interest on the various deposits with the bank either quarterly, annually or even at a longer interval. However, banks currently pay the interest on such deposits, generally two times in the year. This is generally at the end of March end, June end, September end or even December end. The RBI said that as all business banks are currently on center keeping money stage it has been chosen to give banks the choice to pay premium on saving deposits and term deposits at interims shorter than quarterly premises