NBFCs accounted for another 6.85% and other MFIs account for 1.05% of the universe, the report said
A few private banks and small finance banks are offering higher interest rates to attract new deposits.
All SFBs come under strict RBI guidelines and are monitored by the central bank like any other big commercial bank.
Small savings banks & their participation will most certainly lead to greater competition in the space — and this competition may lead to consequenc
Fixed deposits: FD interest rates of different banks vary by deposit amount, deposit tenure and type of depositor.
MFIN is an industry association comprising 58 NBFC-MFIs and 39 associates including banks, small finance banks (SFBs), and NBFCs.
Lenders are flush with funds in CASA accounts as people deposit money in banks for safe-keeping
However, even after lowering rates, small finance banks offer higher interest rates on fixed deposits of all tenures compared to commercial banks
Small finance banks can undertake all basic banking activities including lending and taking deposits
MFIs could again see credit costs in the range of 3-6% in FY22, if the early trends of the collection performance were to persist, according to India