RbiSearchHeader

Press escape key to go back

Past Searches

Theme
Theme
Text Size
Text Size
S3

Notification Marquee

RBI Announcements
RBI Announcements

RbiAnnouncementWeb

RBI Announcements
RBI Announcements

Asset Publisher

79109532

Deregulation of Savings Bank Deposit Interest Rate - Guidelines

RBI/2011-12/272A
RPCD.CO.RRB.BC.No.33/ 03.05.33/2011-12

November 23, 2011

All Regional Rural Banks

Dear Sir,

Deregulation of Savings Bank Deposit Interest Rate - Guidelines

Please refer to our circular RPCD.CO.RRB.BC.No.68/03.05.33/2010-11 dated May 3, 2011.

2. As indicated in the Second Quarter Review of Monetary Policy announced on October 25, 2011, it has been decided to deregulate the savings bank deposit interest rate with immediate effect. Accordingly, the following Guidelines will be effective from October 25, 2011:

  • Banks are free to determine their savings bank deposit interest rate, subject to the following two conditions:
  • First, 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.
  • Second, for savings bank deposits over Rs.1 lakh, a bank may provide differential rates of interest, if it so chooses, 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.

3. The above revised Guidelines would be applicable to savings bank deposits of resident Indians only.

4. Interest rate on Non-Resident (External) Accounts Scheme and Ordinary Non-Resident Deposit under savings account, which has been prescribed at 4 per cent per annum at present, will continue to be regulated until further review.

5. An amending directive RPCD.CO.RRB.BC.Dir.No.27/03.05.33/2011-12 dated October 25, 2011 is enclosed.

6. Please acknowledge receipt of this circular to the Regional Office concerned.

Yours faithfully,

(C.D.Srinivasan)
Chief General Manager
 
Encl: As above


RPCD.CO.RRB.BC.Dir.No.27/03.05.33/2011-12

October 25, 2011

Deregulation of Savings Bank Deposit Interest Rate

In exercise of the powers conferred by Section 35 A of the Banking Regulation Act, 1949 and in partial modification of its directive RPCD.CO.RRB.BC.No.67/03.05.33/2010-11 dated May 3, 2011, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that banks are free to determine their savings bank deposit interest rate for resident Indians only with immediate effect subject to two conditions. First, 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. Second, for savings bank deposits over Rs.1 lakh, a bank may provide differential rates of interest, if it so chooses, 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.

(V.K.Sharma)
Executive Director

RbiTtsCommonUtility

प्ले हो रहा है
వినండి

Related Assets

RBI-Install-RBI-Content-Global

RbiSocialMediaUtility

భారతీయ రిజర్వ్ బ్యాంక్ మొబైల్ అప్లికేషన్‌ను ఇన్‌స్టాల్ చేయండి మరియు తాజా వార్తలకు త్వరిత యాక్సెస్ పొందండి!

Scan Your QR code to Install our app

RbiWasItHelpfulUtility

ఈ పేజీ ఉపయోగకరంగా ఉందా?