https://www.taxtmi.com/article/detailed?id=9888 The central regulatory point is that RBI directions require uniform interest rates across branches and customers for deposits of similar amount and maturity, permitting differential rates only for bulk deposits; offering distinct nominal rates for identical non bulk fixed deposits solely because one product pays simple interest and another reinvests interest (compound) appears inconsistent with that mandate. The article illustrates how headline nominal rates on different FD products can mislead depositors about effective yields due to compounding, and it stresses weak enforcement and the need for transparent slabwise rates with effective yield disclosure. en-us Wed, 07 Jul 2021 09:54:26 +0530 Wed, 07 Jul 2021 09:54:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=9888 The central regulatory point is that RBI directions require uniform interest rates across branches and customers for deposits of similar amount and maturity, permitting differential rates only for bulk deposits; offering distinct nominal rates for identical non bulk fixed deposits solely because one product pays simple interest and another reinvests interest (compound) appears inconsistent with that mandate. The article illustrates how headline nominal rates on different FD products can mislead depositors about effective yields due to compounding, and it stresses weak enforcement and the need for transparent slabwise rates with effective yield disclosure. Articles Other Topics Wed, 07 Jul 2021 09:54:26 +0530 https://www.taxtmi.com/article/detailed?id=9888