Tuesday, October 25, 2011

India: Bank Rates.

Savings bank deposit rates de-regulated

New Delhi:  The Reserve Bank of India or RBI  has decided to deregulate the savings bank deposit interest rate with immediate effect. 

This means customers can expect to earn a higher rate on their deposits.

Currently, the savings rate is at 4%.

Banks are free to determine their savings bank deposit interest rate, subject to two conditions.  Each bank will have to offer a uniform interest rate on savings bank deposits up to Rs. 1 lakh, irrespective of the amount in the account within this limit.  Secondly, for savings bank deposits over one lakh, a bank may provide differential rates of interest, if it so chooses. However, there should not be any discrimination from customer to customer on interest rates for similar amount of deposit.

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