In an unprecedented move, country’s biggest lender State Bank of India has decided to link Interest Rates on the savings bank account to RBI’s repo rate from May 1, 2019.
SBI said, for people with savings bank account having an average balance of more than Rs 1 lakh, the interest rate will be 2.75% less than the repo rate from May 1st.
This move will ensure that a change in repo rate by RBI is quickly reflected in the deposit as well as in lending rates of the lender.
In an unprecedented move, country’s biggest lender State Bank of India has decided to link interest rates on the savings bank account to RBI’s repo rate from May 1, 2019. With this SBI has become the first Indian bank to connect both deposit rate and lending rate to an external benchmark.
SBI said, for people with savings bank account having an average balance of more than Rs 1 lakh, the interest rate will be 2.75% less than the repo rate from May 1st. On the other hand for all cash credit accounts and overdraft accounts above 1 lakh rupees, the floor rate will be 2.25% above the repo rate.
This move will ensure that a change in repo rate by RBI is quickly reflected in the deposit as well as in lending rates of the lender.
