RURAL Electrification Corporation, the state-run lender for utilities, plans to raise 50 crore from sale of bonds that carry tax-benefits under the program to promote infrastructure building. The company follows many such as Infrastructure Development Finance Co and IFCI that have been raising funds using the tax benefit status. REC bonds are rated triple A. REC, which began the private placement from Thursday, is offering an interest rate of 8% per annum where bonds have a buyback option after five years. And 8.1% a year without the buyback option that will be redeemed after 10 years.
What are the factors affect the changes in rate of Fixed Deposits? Fixed Deposits are now considered to be a very old fashioned method of saving, but still attract many investors since they have guaranteed returns at the end of the tenure of the investment at a decent interest rate. There are various factors that affect the rates of interest for a Fixed Deposit. Policies of the Reserve Bank of India - The several norms and restrictions posed by the Reserve Bank of India , in order to gain optimum control over credit and inflow and outflow of fund throughout the country. The repo rate changes, cash reserve ration tends to change and these changes affect the banking products like Fixed Deposits, loans etc. Recession - When unemployment in a country crosses the benchmark set Recession hits, and slowly the country faces an economic slow movement, affecting the purchasing power of the people in the country, forcing the Reserve Bank of India to release more funds in the financial marke...
