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RBI Says 159 Districts in 25 States Saw Decline in Fixed Deposits Due to Covid-19 Crunch: Report

RBI (Image: Shutterstock)

RBI (Image: Shutterstock)

In a bid to encourage more covid-19 vaccination, some state-owned lenders have announced higher interest rates on deposits.

According to the latest report by the Reserve Bank of India (RBI) 159 districts in 25 states saw a decline in term (fixed) deposits from January to March.

The report quoted by The Indian Express, this marks a sharp spike as the number of such districts was in the range of 22-53 in the 11 quarters between April-June 2018 and October-December 2020.

In a bid to encourage more covid-19 vaccination, some state-owned lenders have announced higher interest rates on deposits, but for a limited period.

City-based UCO Bank said it is offering 30 basis points or 0.30 per cent higher rate on fixed deposits of 999 days for applicants who have received at least one dose of a Covid vaccine.

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“We are also taking minor steps to encourage vaccination drives. We are offering UCOVAXI-999… for a limited period till September 30," a bank official told PTI.

Central Bank of India had also recently launched the Immune India Deposit Scheme with an additional interest rate of 25 basis points above the applicable card rate for those who have been vaccinated.

The new product has a maturity of 1,111 days, the lender said in a release.

The cumulative number of covid-19 vaccine doses administered in the country has exceeded 23.59 crore, the health ministry said earlier.

Centre last month announced Rs 10 lakh fixed deposit, free health insurance and education for children who have lost both parents or surviving parent or legal guardian/adoptive parents due to covid-19.

The support will be provided under ‘PM-CARES for Children’ scheme.

The government announced that all such children will be enrolled as a beneficiary under Ayushman Bharat Scheme (PM-JAY) with a health insurance cover of Rs. 5 lakhs. The premium amount for these children till the age of 18 years will be paid by PM CARES. Also, the fund will also support their studies till higher education.

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first published:June 21, 2021, 11:07 IST