Hello and Namaste Everyone
I hope that you are doing good and safe in this time of covid because this is very important. today in this post I am going to talk about the banking system and how much I rely on banks for my money-related transactions.
These days banks are highly affected by covid panda me because people are trying to reduce the deposit with banks and have also minimized the number of transactions for various needs. because pandemic has also affected the businesses that's why big transactions by the companies are also reduced which is impacting the financial situation of banks. some of the banks are already going through liquidity issues and as a result, their ATMs are not able to dispense more amount on daily basis.
I am not against bands but I usually try to avoid putting my money in form of deposits with banks because they are paying quite low interest. in India these days banks are offering an interest rate of between 5 to 6% per annum on the fixed deposits and on the recurring deposits it's even less so I do not find it lucrative to put my money there.
Although I am not a big customer of them because I generally do the deposits with a small amount whatever I am able to save from my earnings but I can imagine that the situation would be the same with many people. there would be many who do bigger deposits but because of the reduced interest they are not interested to do this and that is what affecting the business of banks.
I think that this is the time when banks need to think about it and come out with a solution that can help their customers more so that they retain their trust in the banking system which will ultimately help the banks to grow. I never said that banks are not important because it is one of the important function of any country's economy and they help us perform a lot of transactions within the country and outside country for business purposes and even for the individuals.
If it continues for a long then I expect the bank will be a kind of institution where people will be using it for money transactions and deposits will reduce since they are not able to give lucrative interest on the deposits. I totally understand that banks are also facing challenges and it's not possible for them to offer bigger interest however I believe that if they try then they can certainly come out with something which might make their customers happier as to what they are as of now.
Do you think that in the next few years banks will be able to come out with some new plan or concept to attract more customers for deposits or they will face challenges because of finding me and also crypto which is another segment where people like to put their money for better returns?
What are your thoughts about it?
Thank you.
Stay Safe.