Current Affairs · Banking Operations
When commercial banks reduce their retail Fixed Deposit (FD) rates despite unchanged policy repo rates, it is primarily driven by which condition in the banking system?
- 1Rising inflationary pressures in the economy
- 2An unexpected hike in the Cash Reserve Ratio (CRR)
- 3Surplus liquidity conditions and strong deposit growth in the banking system✓
- 4A sharp decline in India's total foreign exchange reserves
Correct answer
Surplus liquidity conditions and strong deposit growth in the banking system
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