Gloom for savers: How RBI repo rate cut will impact FD investments, savings

The recent spate of rate cuts by the Reserve Bank of India could be bad news for savers

In a new set of measures to reduce the impact of coronavirus lockdown on the economy, the Reserve Bank of India (RBI) on Friday decided to cut the repo rate by 40 basis points from 4.4 per cent to 4 per cent. The reverse repo rate was also reduced by 40 basis points to 3.35 per cent. What will be the impact of these rate cuts on fixed deposits (FDs), one of the most popular investment avenues?

Many people prefer bank FDs over equities as the former are considered safe. However, the recent spate of rate cuts could mean another