Mumbai: BMC’s Smart Hack to Earn ₹1000 Crore More in Interest

Mumbai, India: The Brihanmumbai Municipal Corporation (BMC) has introduced a transparent online system for fixed deposit investments, boosting its interest earnings by ₹1000 crore compared to last year. This digital shift replaces the traditional method of manually calling banks for interest rate quotes.

Since July 2024, banks now submit and revise their interest rate quotes online, fostering healthy competition. “We raise our demand in the morning, and banks can submit and revise their quotes until 3 PM. A higher interest rate benefits BMC, so we allow extra time when needed,” a senior official explained.

BMC’s finance department reported ₹4080.84 crore in interest earnings between April 2024 and January 2025 from investments of ₹45,034.66 crore. By March 2025, investments are expected to reach ₹54,178.27 crore, with projected earnings of ₹4851.12 crore.

Civic chief Bhushan Gagrani highlighted the impact of this new system: “We are earning an average of half a per cent more in interest, a significant boost for BMC.” The additional ₹1000 crore could fund essential civic projects, such as the construction of two new hospitals.