In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by
Reviewed by Dalvoy
UPSC Civil Services preparation
- AUnion Ministry of Finance
- BUnion Finance Commission
- CIndian Banks’ Association
- DNone of the aboveCorrect
Explanation
The correct answer is D because the interest rate on savings accounts is not fixed by any of the bodies mentioned in the options. Since October 2011, the Reserve Bank of India deregulated savings bank deposit interest rates. Currently, individual commercial banks have the freedom to determine their own interest rates on savings bank deposits based on market conditions and internal policies, subject to certain RBI guidelines. Therefore, none of the listed organizations fix these rates.
Related questions
More UPSC Prelims practice from the same subject and topic.
- Prelims 2010GS1economy
Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?
- Prelims 2010GS1economy
With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements:
- Prelims 2010GS1economy
Which of the following is/are treated as artificial currency?
- Prelims 2010GS1economy
When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?
- Prelims 2010GS1economy
In India, which of the following is regulated by the Forward Markets Commission?
- Prelims 2010GS1economy
With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?