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UCBs - Payment of Interest on Savings Bank Account on Daily Product Basis

RBI/2009-10/339
UBD (PCB) BPD.Cir.No. 48/13.01.000 / 2009-10

March 4, 2010

Chief Executive Officer
All Primary (Urban) Cooperative Banks

Dear Sir,

Payment of Interest on Savings Bank Account on Daily Product Basis

Please refer to our circular UBD (PCB) BPD.Cir.No. 7/13.01.000/2009-10 dated September 1, 2009 advising banks to put in place requisite infrastructure so that transition to the revised procedure of calculating interest on balances in savings bank accounts on a daily product basis could be implemented smoothly.

2.  We advise that payment of interest on savings bank accounts may be made by banks on a daily product basis with effect from April 1, 2010.

Yours faithfully,

(A.K. Khound)
Chief General Manager-in-Charge

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