Reserve Bank of India – Press Releases
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Ajit Prasad Press Release: 2021-2022/408 |
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Month: June 2021
Top 10 Banks With Higher Interest Rates On 2-3 Year Fixed Deposits
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2 Year FD Interest Rates
Below are the top 10 banks which are currently promising higher interest rates on 2-year fixed deposits for a deposit amount of less than Rs 2 Cr.
| Small Finance Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|
| Utkarsh Small Finance Bank | 6.75% | 7.25% | 19.10.2020 |
| Suryoday Small Finance Bank | 6.50% | 6.50% | 21.06.2021 |
| Jana Small Finance Bank | 6.50% | 7.00% | 07.05.2021 |
| Ujjivan Small Finance Bank | 6.50% | 7.00% | 05.03.2021 |
| AU Small Finance Bank | 6.25% | 6.75% | 01.04.2021 |
| Private Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
| RBL Bank | 6.10% | 6.60% | 01.06.2021 |
| Yes Bank | 6.00% | 6.50% | 03.06.2021 |
| IndusInd Bank | 6.00% | 6.50% | 04.06.2021 |
| DCB Bank | 6.00% | 6.50% | 15.05.2021 |
| Karur Vysya Bank | 5.50% | 6.00% | 11.01.2021 |
| Source: Bank Websites |
3-Year FD Interest Rates
The top 10 banks now offering higher interest rates on 3-year fixed deposits for a deposit amount of less than Rs 2 crore are listed below.
| Small Finance Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|
| Utkarsh Small Finance Bank | 6.75% | 7.25% | 19.10.2020 |
| Ujjivan Small Finance Bank | 6.75% | 7.25% | 15.05.2021 |
| Jana Small Finance Bank | 6.50% | 7.00% | 04.06.2021 |
| AU Small Finance Bank | 6.50% | 7.00% | 11.01.2021 |
| Suryoday Small Finance Bank | 6.25% | 6.50% | 03.06.2021 |
| Private Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
| IndusInd Bank | 6.50% | 7.00% | 04.06.2021 |
| DCB Bank | 6.50% | 7.00% | 15.05.2021 |
| RBL Bank | 6.10% | 6.60% | 01.06.2021 |
| Yes Bank | 6.00% | 6.50% | 03.06.2021 |
| Karur Vysya Bank | 5.50% | 6.00% | 11.01.2021 |
| Source: Bank Websites |
Conclusion
Bank fixed deposits (FDs) are often the first place of reference for investors with a low-risk profile and those looking to fulfil their both short-term and long-term goals with assured returns. One of the biggest advantages to investing in fixed deposits is that the interest rates on bank FDs are guaranteed until maturity, regardless of changes in the banks’ FD card rates in the future. For example, if an investor opens a two-year bank fixed deposit at 6.75 per cent p.a., the interest rate will remain the same until the expiration of the two-year maturity period.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, covers fixed deposits made with scheduled banks (RBI). In the case of a bank collapse, the insurance policy covers cumulative bank deposits, which include fixed deposits, savings accounts, recurring deposits, and current accounts, of up to Rs 5 lakh per bank, per depositor. The above-listed banks with 2-3 year fixed deposits are currently providing much higher returns than that of small saving schemes and are also covered by DICGC. So if you are an investor with less exposure to mutual funds and market-based returns, then placing a fixed deposit in any of the above-discussed banks can be a good bet if you have a medium-term goal.
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HDFC Bank to enhance digital banking experience with Digital & Enterprise Factory, BFSI News, ET BFSI
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To roll out its new digital products and services in the future and augment its IT Infrastructure, HDFC Bank has launched a Digital Factory and an Enterprise Factory. The dual approach of building the Digital Factory along with an Enterprise Factory is part of the bank’s technology transformation agenda to run and transform the bank. The factories will be pivoted on APIs, data and cloud.
The bank proposes to strengthen capabilities for the Digital and Enterprise Factories by hiring up to 500 people over the next two years, from diverse backgrounds such as data analytics, AI, ML, Design Thinking, Cloud and DevOps.
“The Digital and Enterprise Factories will help us realise the strategy of ‘running’ the bank, while ‘building’ the bank for the future.” said Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank. “Since inception, we have led the digital transformation of the Indian financial services sector and continue to invest in technologies to improve customer experience and enhance efficiencies. This is changing the paradigm by redefining financial services and designing products and services by always keeping the customer at the centre.’’ he added.
The Enterprise Factory will upgrade legacy infrastructure, decouple existing systems and build its own capabilities by embracing open-source to build resilience and scale. The bank is also developing future-ready IP technologies and moving to a native cloud architecture in collaboration with fintech, niche technology and large IT companies.
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Best Focused Equity Funds For Aggressive Long Term Investors By ICICI Direct
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1. Axis Focused 25G
This focused fund from the Axis mutual fund house commands a sizeable AUM of Rs. 16,540 crore. The fund is categorized as a very high risk fund and carries an expense ratio of 1.83 percent. Of the total corpus, fund is majorly invested into large caps with only a small portion into mid-caps.
Over a 1-year period, the fund has underperformed the benchmark index Nifty 50 TRI. SIP in the fund can be started for as less as Rs. 500.
Rs. 10000 monthly SIP started 3 years back in the fund is now worth Rs. 5.06 lakh. The fund’s top holdings comprise Bajaj Finance, Kotak Mahindra Bank, TCS, Avenue Supermarts, Pidilite Industries, HDFC, Info Edge (India) and Divi’s Lab.
2. SBI Focused Equity-G
The fund is placed in the moderate risk category and carries an expense ratio of 1.79% as against the category average of 2.24%. The fund is invested into large, mid and small cap stocks. The fund’s benchmark is S&P BSE 500 TRI.
A SIP of Rs. 500 can be started in this SBI focused equity scheme.
Top holdings of the fund include stocks like HDFC Bank, Alphabet, P&G Hygiene, Alphabet Inc, ABB India, Gland Pharma, Avenue Supermarts etc.
Rs. 10000 SIP started 3-years ago in the fund is now worth Rs. 5.16 lakh, while a lump sum investment of Rs. 1 lakh is now Rs. 1.56 lakh.
3. IDFC Focused Equity Reg-G:
Assets under management of the fund are to the tune of Rs. 1455 crore. The risk-o-meter defines the fund to be moderately high on risk, while the expense ratio of the fund is 2.18%. The benchmark of the fund is S&P BSE 500 TRI and during a 1-year time period the fund has underperformed the benchmark with a return of 45.44%.
Rs. 10000 SIP in 3 years time has grown to Rs. 4.71 lakh. An investor can start a SIP in this IDFC focused fund for just Rs. 100.
Top holdings of the fund include ICICI Bank, SBI, Infosys, HDFC Bank, Axis Bank, Federal Bank, UltraTech Cement and M&M Financial Services among others
4. Tata Focused Equity Fund Reg-G
The fund is majorly invested into large cap stocks and carries an expense ratio of 2.16%. The fund as per the risk-o-meter is a high risk investment bet. Minimum SIP amount for the fund is Rs. 150.
Rs. 10000 monthly SIP in 1 year has grown into an amount of Rs. 1.52 lakh.
In March the fund has notified the change in fund manager under Tata mutual fund.
Top holdings of the fund include ICICI Bank, SBI, Infosys, RIL, HDFC bank, HDFC, Bharti Airtel, BPCL etc.
Taxation of equity mutual funds
Typically for the purpose of taxation, those funds are categorized as equity schemes which have an exposure of over 65% into equities. And short term capital gains accrue, if the holding period is less than 1 year, while if it is over 1 year then long term capital gains are realized by an investor.
| Holding period | Gains type | Taxation rate |
|---|---|---|
| If less than 1 year | STCG | 15% |
| If held over 1 year | LTCG over Rs. 1 lakh | 10% |
Note long term capital gains up to Rs. 1 lakh in a fiscal year are exempt from tax.
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PayU, BFSI News, ET BFSI
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PayU Insights report highlights the key sectors that have been illuminated in lockdown 1.0, pre lockdown 2.0 and lockdown 2.0. Online donations, charitable causes and logistics marches sky-high beat, others remained mere props in their performance. Entertainment and gaming could be quoted in this instance.
There has been a 52 percent increase in transaction volume and a 76 percent increase in expenditure year over year (May 2020 vs. May 2021). There was a 10% rise in the number of transactions after lockdown 2021 compared to pre-lockdown months, and a 21% decrease in average ticket size, demonstrating that customers are adopting online payments even for smaller transactions.
UPI continues to be the headliner, with number of transactions increased by 320% and expenditure increased by 306% in lockdown 2.0. Key insights of the report are as follows:
Online donations to charitable causes
Digital payments for charitable causes were able to get a good growth on the transactions by a massive 731% and expenditure by 2308% in lockdown 1.0. The lockdown 2.0 provides powerful forensic evidence in the record by distending the transactions and expenditure increased by 575% and 476% respectively. Within this category, various NGOs encapsulated activities to raise funds for covid relief.
Logistics hiked with partial and staggered lockdowns
Logistics sector nourished the undeviating growth in both transactions and expenditure with 217% and 227% respectively in lockdown 2.0 with a comparison of ventures as in lockdown 1.0. The utilisation of courier delivery service and purchase and transfer of essential items added proactive grounds to logistics. Further as per the bill passed in budget 2021, the scheme attempt to upsurge the digital payments.
Digital payment activities of Entertainment and gaming demoted
These sectors perceived degrowth. Transactions and expenditure took a major toll in the entertainment sector, hence down turning the activities in lockdown 2.0 by 35% and 41% respectively.
Likewise, the gaming sector too showed a turnaround in trends, declining by 63% compared to pre lockdown months.
The inflated sense of fall could be highlighted on the notion of consumers shifting from non-essential and muting of sentiments in this phase.
Travelling
The aftermath of lockdown 1.0 and 2.0 on travelling magnify the transactions and expenditures by 186% and 125% respectively. The relaxation in staggered lockdown navigated the travelling activities. But immediate lockdown downplayed the experience of transactions by 65% and by 78% in expenditure
UPI Growth
Lockdown 2.0 recorded phenomenal growth for UPI as a payment mode. The number of transactions through UPI increased by 320% and expenditure increased by 306% in lockdown 2.0, compared to lockdown 1.0. The next highest growth in modes of payment was observed in credit card transactions, as the number of transactions increased by 87% and expenditure increased by 69% year on year. For net banking and debit card modes, the number of transactions grew by 12% and 6% respectively year on year.
Pharmacy
The online digital payment transactions and expenditures harped by 78% and 31% respectively in lockdown 2021 compared to pre lockdown months. 9% decrease in transactions and 22% decrease in expenditures was witnessed with every succeeding month.
Retail and e-commerce
The analogy of lockdown 1.0 and 2.0 on account of transactions and expenditure in retail and e-commerce was seen as 171% growth in transactions and 108% in expenditure.
Education
Lockdown 2.0 anticipated expenditures to a growth rate of 37% whereas the transactions slipped by 31% as compared to lockdown 1.0.
Recharge and utility payments
The transactions and expenditures inched by 68% and 11% respectively in lockdown 2.0 compared to pre lockdown.
Groceries
Year on year, number of transactions grew by 171% with 108% growth in expenditure. There was a 52% increase in the number of transactions post lockdown 2.0 compared to pre lockdown months in 2021.
Hemang Dattani, Head–Data Intelligence, PayU said “Broadly, businesses and consumers were better prepared to deal with the exigencies of lockdown in 2021. Given that the lockdown was staggered and geographically restricted, the growth of digital payments has been steady, especially for sectors like retail, logistics & pharma.’’
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HDFC Bank creates Digital and Enterprise factories to roll-out new digital products
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Private sector lender HDFC Bank on Tuesday announced that it is setting up a Digital Factory and an Enterprise Factory to roll-out new digital products and services in the future and augment its IT Infrastructure.
The Digital and Enterprise factories will be pivoted on APIs (Application Programming Interface), data and cloud.
Tech transform agenda
The dual approach of building the Digital Factory along with an Enterprise Factory is part of the bank’s technology transformation agenda to run and transform the bank, it said in an official release. The bank has faced multiple outages in its mobile and net banking services over the past couple of years.
The bank is planning to hire up to 500 people over the next two years from diverse backgrounds such as data analytics, AI, ML, Design Thinking, Cloud and DevOps in a bid to strengthen capabilities for the Digital and the Enterprise Factories.
The Digital Factory will build new business and new solutions leveraging new tech stacks/applications and high resiliency and monitoring capabilities. This will be backed by the ability to support large volume growth and plan for upgrading technologies.
It is also developing future-ready IP technologies and shifting to a native cloud architecture in collaboration with niche technology companies, fintech and large IT companies.
“Ensuring reliability, availability, scalability and security will be at the core of the Digital Factory’s endeavours,” it said.
The Enterprise Factory will upgrade its legacy infrastructure, decouple existing systems and build its own capabilities, leveraging open-source for resilience and scale.
“The Digital and Enterprise Factories will help us realise the strategy of ‘running’ the bank, while ‘building’ the bank for the future,” said Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank.
“We are poised to capitalize on opportunities that higher digital adoption will bring in India.
Our endeavour is to provide seamless experience to our customers across all platforms, on the back of resilient infrastructure. This is changing the paradigm by redefining financial services and designing products and services by always keeping the customer at the centre,” added Rao.
The bank has been working on a Technology Transformation Agenda for its customers.
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Suryoday Small Finance Bank Revises Interest Rates On FD, Check New Rates Here
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Investment
oi-Vipul Das
|
Suryoday Small Finance Bank revises its fixed deposit interest rates as of June 21, 2021. Suryoday Bank’s FD rate ranges from 3.25 per cent to 6% for general customers and 3.25 per cent to 6% for senior citizens for deposits ranging from 7 days to 10 years after the most recent adjustment. The bank offers the highest rate of interest on five-year deposits. The general public and elderly citizens will get 6.25 per cent and 6.50 per cent interest on their deposits, respectively.
Suryoday Small Finance Bank FD Rates
Below are the most recent fixed deposit interest rates of Suryoday Small Finance Bank which are in force from June 21, 2021 for a deposit amount of less than Rs 2 Cr.
| Tenure | Regular FD Rates | Senior Citizen FD Rates |
|---|---|---|
| 7 days to 14 days | 3.25% | 3.25% |
| 15 days to 45 days | 3.25% | 3.25% |
| 46 days to 90 days | 4.25% | 4.25% |
| 91 days to 6 months | 4.75% | 4.75% |
| Above 6 months to 9 months | 5.25% | 5.25% |
| Above 9 months to less than 1 Year | 5.75% | 5.75% |
| 1 Year to 1 Year 6 Months | 6.50% | 6.75% |
| Above 1 Year 6 Months to 2 Years | 6.50% | 6.50% |
| Above 2 Years to 3 Years | 6.25% | 6.50% |
| Above 3 Years to less than 5 Years | 6.75% | 6.75% |
| 5 Years | 6.25% | 6.50% |
| Above 5 years to 10 years | 6.00% | 6.00% |
| Source: Bank Website |
Note
Capital Small Finance Bank and Equitas Small Finance Bank both cut interest rates on June 3rd and 1st June 2021. On a 900-day FD, Capital Small Finance Bank provides the highest interest rate of 6.25 per cent, while Equitas Small Finance Bank provides the highest rate of 6.5 per cent on an 888-day FD. Among the interest rates on fixed deposits, Small Finance Banks always provide the highest rate. For instance, according to their websites, Utkarsh Small Finance Bank for a deposit period of 700 days and North East Small Finance Bank for a deposit period of 777 days are the banks that provide a 7% interest rate on FDs which is much higher than the interest rates of leading private and public sector banks.
Story first published: Tuesday, June 22, 2021, 15:55 [IST]
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No plan to merge IIFCL with new NaBFID, says IIFCL Chief Jaishankar
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India Infrastructure Finance Company Ltd (IIFCL), a State-owned entity, on Tuesday made it clear that it was not looking to merge itself with the newly set up National Bank for Financing Infrastructure and Development (NaBFID), which is being positioned as the principal Development Financial Institution (DFI) for infrastructure financing in the country.
“There are no such plans. We have our plans for the future for IIFCL. Of course we would like to take the objectives of the Government forward. That is very very clear”, P.R.Jaishankar, Managing Director, IIFCL said when asked if there are any plans to merge IIFCL with NaBFID.
Stating that IIFCL would like to position itself as a leading innovative infrastructure lender, Jaishankar said that the institution would continue to roll out new innovative products in the infrastructure financing space in the coming days.
Net profit of ₹ 325 crore
IIFCL on Tuesday reported a consolidated net profit of ₹ 325 crore for the financial year ended March 31, 2021. This was a 246 per cent increase over net profit of ₹ 94 crore recorded in the previous year. During 2020-21, IIFCL recorded the highest ever sanctions and disbursements of ₹ 20,892 crore and ₹ 9,460 crore respectively, on a standalone basis.
Also read: The new DFI must look beyond financing
On capital raising plans, Jaishankar said that IIFCL was adequately capitalised and had capital adequacy ratio of 31 per cent. “With this capital adequacy, there is potential to do additional business of ₹ 50,000 crore. The additional capital is required thereafter”, Jaishankar said.
Jaishankar however noted that IIFCL could raise debt resources of about ₹ 15,000 crore this fiscal to fund growth. Pawan Kumar, Deputy Managing Director, IIFCL clarified that the entire ₹ 15,000 crore will be mobilised from the domestic markets.
Keeping with its strategic intent to strengthen the monitoring and surveillance systems through digitalisation, IIFCL is now in the process of putting in place an online project monitoring system, first of its kind in India, for real-time project monitoring during construction phase by integrating high-end solutions like Drones, AI etc.
Also, IIFCL is in the process of establishing an in-house research and advisory wing, which would enable the institution in further bolstering its capabilities to provide policy advocacy, feedback, remedial action, innovative products and processes to government, regulatory bodies, project authorities and other stakeholders, Jaishankar said.
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Muthoot Pappachan Group acquires equity stake in Paymatrix
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Muthoot Pappachan Group (MPG) has announced investment in fintech start-up Paymatrix through its flagship entity – Muthoot FinCorp Limited, and the associate company, The Thinking Machine Media Private Limited (TMM).
MPG acquired 54 per cent equity shareholding in Paymatrix through a combination of primary and secondary investment.
Fintech will be the silver bullet for growth in 2021
Paymatrix is a fintech start-up that was set up in 2016 by Mukesh Chandra Anchuri, Muralidhar Nayak Guguloth and Anusha KP, with a vision to streamline property rent payments and collections for tenants and landlords. It was incubated at IIIT-Hyderabad and Paypal accelerator had secured early-stage investments from investors including Xseed venture partners, IIIT-H seed fund, IIIT-H foundation, SucSEED Angel Network and Smartcity Dubai.
Portfolio diversification
Paymatrix started off with a simple proposition of enabling individuals to pay their property rent, rent deposit and maintenance payments online using credit cards. The start-up is one of the largest property rent payment and collection platforms in India, with a user base of 82,000+ and having processed ₹200 crore till date. In the last two years, Paymatrix diversified its portfolio by enabling payments beyond property rent to its customers.
Credit cards gain currency again
The platform now enables individuals to pay for all their large-ticket monthly expenses, such as tuition fees, maintenance bills, vendor payments, etc, on credit card without the need for point-of-sale at the recipient end.
Competitive edge
Thomas John Muthoot, Chairman, Muthoot Pappachan Group, and Managing Director, Muthoot Fincorp Limited, said, “Muthoot FinCorp is currently going through several digital transformations on various fronts. We are extremely pleased to partner with Paymatrix and firmly believe that this investment will extend to our existing lending business a competitive edge in terms of expanding the product offering and foray into new markets and new customer segment.”
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5 Best Tax Saving Fixed Deposits For Tax Savers
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Investment
oi-Vipul Das
|
Tax saving investments under section 80C includes PPF, EPF, LIC premium, Equity-linked saving scheme (ELSS), home loan principal amount payment, Sukanya Samriddhi Yojana (SSY), National saving certificate (NSC), National Pension System (NPS), Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years. But among all the tax saving options, post office small savings schemes and 5-year bank fixed deposits are the most secure investments to bet. As a result, amid the low-interest rates regime of bank FDs, there are currently a handful of banks that are currently providing higher returns on 5-year tax-saving fixed deposits than post office time deposits. So if you are a tax-saver and want to invest in a secure investment to minimize your tax liability, then here are the best tax-saving FDs to invest in.
5 Best Tax Saving Fixed Deposits of Private Banks
| Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|
| Yes Bank | 6.50% | 7.25% | 03.06.2021 |
| DCB Bank | 6.50% | 7.00% | 15.05.2021 |
| RBL Bank | 6.50% | 7.00% | 01.06.2021 |
| IndusInd Bank | 6.00% | 6.50% | 04.06.2021 |
| Karur Vysya Bank | 6.00% | 6.00% | 11.01.2021 |
| Source: Bank Websites |
5 Best Tax Saving Fixed Deposits of Public Sector Banks
| Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|
| Union Bank | 5.55% | 6.05% | 15.12.2020 |
| Canara Bank | 5.50% | 6.00% | 08.02.2021 |
| State Bank of India | 5.30% | 5.80% | 08.01.2021 |
| Bank of India | 5.30% | 5.80% | 01.06.2021 |
| Punjab & Sind Bank | 5.30% | 5.80% | 16.05.2021 |
| Source: Bank Websites |
5 Best Tax Saving Fixed Deposits of Small Finance Banks
| Banks | Regular FD Rates | Senior Citizen FD Rates | W.e.f. |
|---|---|---|---|
| Utkarsh Small Finance Bank | 6.75% | 7.25% | 19.10.2020 |
| Jana Small Finance Bank | 6.75% | 7.25% | 07.05.2021 |
| Ujjivan Small Finance Bank | 6.75% | 7.25% | 05.03.2021 |
| AU Small Finance Bank | 6.25% | 6.75% | 01.04.2021 |
| Suryoday Small Finance Bank | 6.25% | 6.50% | 21.06.2021 |
| Source: Bank Websites |
Story first published: Tuesday, June 22, 2021, 13:06 [IST]
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