E-Paper
RBI deregulates interest on saving account in rural banks
The Reserve Bank on Wednesday deregulated interest rate on savings accounts in Regional Rural Banks (RRBs) subject to two conditions, a move that will fetch better returns for its depositors.
The Reserve Bank on Wednesday deregulated interest rate on savings accounts in Regional Rural Banks (RRBs) subject to two conditions, a move that will fetch better returns for its depositors.
RBI had freed savings bank deposit rates for the scheduled commercial banks last month.
Under the first condition, the notification said, “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”.
The other condition states that for savings bank deposits over Rs 1 lakh, a bank may provide differential rates of interest, if it so chooses.
This would, however, be subject to the condition that banks will not discriminate in the matter of interest paid on such deposits, between one deposit and another of similar amount, accepted on the same date, at any of its offices, it said.
