Clarifications On FD Interest Rates SBI


The FD interest rates are posted on the website of the Financial Department of SBI. The rate is between 2.90% to 4.60%. The financial department of SBI posts the FD rates on its website. FD rates are between 2.90% to 4.60%. The financial department at SBI has been working to spread financial literacy among the masses by organizing educational seminars, workshops, etc., on topics such as Mutual Funds / Equity Funds, Banking Products & Services (Fixed Deposits / Current Accounts / Saving Accounts), Insurance Products & Services (Term Plan/ Insurance Plus/ Unit Linked Insurance Plans), Charter Capital, Credit Cards etc. 

The Finance Department also helps retail customers to get loans for starting new ventures or for expansion through its commercial banking operations. Loans are mainly in the range of Rs. 15 Lakhs and Rs. 30 Lakhs with a maximum limit of Rs. 2 Crores for new ventures and for expansion. 

Shares Represented On The Capital Market:

Capital Market is segmented into Sub-segments, National Stock Exchange (NSE) has been constituted in 1992 on the recommendations of B.D. Jatti Committee under the aegis of Securities & Exchange Board of India (S&B). The NSE came into effect from April 1992. Before this period securities were traded on private exchanges or through over the counter transactions. The Nyse Ltd is an investment company incorporated under Companies Act 1956 as a company limited by shares and issued NIFTY market scrip listed Company with trading symbol (NIFTY). 

It is engaged in financial markets activities including broking, stock exchange services, futures & options trading and bond brokerage. The aim of the BFSI Act is to protect the interest of investors, promote development of the securities market, facilitate the growth and maintenance of fair and efficient markets and to develop a transparent, orderly, efficient and fair market for securities in India. SBI representing SBI Mutual Fund started marketing of shares under NSE on behalf of Funds.

IDA (Inter-corporate deposit scheme):

A small manufacturer who wants to expand his business may approach a bank for a loan but the latter may not be in a position to grant the loan. The manufacturer can, however, give an undertaking in the form of a deposit certificate or simple pledge in favor of the bank. Such deposits are called “Insurance Contract for Deposits (IDA)”. It is similar to other deposits with banks but it will have special features and conditions according to which these deposits have been given by the borrower/ depositor. Such deposits are considered to be low-risk because they have a very short maturity.

Security against deposits: 

Under this scheme the banks will accept Securities as security for the amount of money that is deposited by their customers. Under this scheme, Banks can take hypothecation, pledge and mortgage of shares, debentures and other securities with them as security for their deposit liabilities.  The borrower of the fund may deposit shares/securities in favor of the bank as collateral security against loans granted by the bank. Since these are shares/securities related to the borrower company, these can be sold easily in the treasury stock market through block deals or through book building methods in case of IPO (Initial Public Offering). This makes the money with banks liquid and avoids the non-availability of funds in times of crisis.

The SBI Share Bond Policy:

The Share Bond Scheme was launched by the SBI in 1993 and has been operating since then. The objective of the scheme is to provide liquidity and crediting options for the bondholders of SBI. The scheme is completely voluntary and no guarantee or undertaking is required from any section of persons participating in the share bond scheme.  The fund can be withdrawn at any time from an approved SBI branch or ATM machine in India. The Fund is credited to an eligible account, within a period of 24 hours, subject to minimum balance requirements.


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