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RBL Bank increases savings account interest rates up to 150 basis points
August 25, 2023
Private lender RBL bank has revised interest rate on savings deposit rate in some buckets (slabs by amount) upto 150 basis points effective August 21, 2023. For daily balances between ₹25 lakh to ₹2 crore, bank will pay 7.5 per cent (per annum) as against 7.0 per cent rate.
It reduced the rate by 50 bps to 6.5 per cent for daily balances between ₹3.0 crore to ₹7.5 crore. It jacked up the savings rate by 150 basis points to 6.75 per cent for balances above ₹400 crore, according to bank data.
This revision comes when banks are facing liquidity pressures after the Reserve Bank of India imposed an incremental – Cash Reserve Ratio (I-CRR) of 10 per cent on the increase in net demand and time liabilities (NDTL) between May 19, 2023 and July 28, 2023. This purely temporary measure was intended to absorb the surplus liquidity generated by various factors including the return of ₹2000 notes to the banking system.
Recently, some other banks including Axis Bank and Canara Bank also revised interest rates on deposits for amounts less than ₹2 crore.
This comes after the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 6.5 per cent for the third time in a row. The decision to keep policy interest rate unchanged was announced by RBI Governor Shaktikanta Das on 10 August. The repo rate is the interest rate at which the RBI lends money to commercial banks.
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