Hello Hive Fam
Good day to you all, and I hope you're having a good time wherever you are.
Banks are the kind of institutions that is used by people for making deposits and availing credit services. Multiple credi products are available with banks and these are like credit cards, home loan, car loan and much more. I am not sure if there's any alternative solution for this and this is where banks make a lot of money. Currently in India banks charge much higher on the loans and what they pay is like peanuts.
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Interest on fixed deposits is between 6-7% and it varies by different banks and for saving account it's less than 3% mostly and most of the banks offer 2.5% which is too low. In last few years credit utilisation has increased in the country which is also resulting as NPA (non performing asset).
RBI is expected to bring a new rule where anyone who wants to avail credit from the bank must have 730 CIBIL score and once this rule is implemented, things are going to be tough for a lot of people. A score of 750 is considered very good and banks are good to provide credit products to such people but after this new rule it's going to be strict.
This new rule will encourage people to increase their CIBIL score and also reduce NPA which is good for banks. Although this may also impact bank's profits as not everyone with less score is a defaulter. I am very much particular about the cibil score and pay EMI and dues on time so that my cibil is maintained well. Thank you!
