The SBI's rate cut will fundamentally change how savings bank accounts are viewed in India

Description

On July 31, 2017, the State Bank of India (SBI), the country's largest commercial bank, lowered the interest rate by 50 basis points to 3.5% per annum on savings bank deposits of Rs1 crore or below. The reasons: benign inflation rates and a large influx of funds due to demonetisation. SBI's initiative needs to be carefully analysed because until October 2011, the savings bank deposit interest rates were regulated by the Reserve Bank of India. Since then, after banks were given the freedom to determine their rates, many banks increased it while none reduced it. Read more at: https://qz.com/india/1047757/the-sbis-rate-cut-will-fundamentally-change-how-savings-bank-accounts-are-viewed-in-india/

Publication Date

8-8-2017

Publication Title

Quartz India

Publisher

Uzabase, Inc., Quartz Media, Inc.

Keywords

Monetary policy, Banking, Financial system, Fiscal policy, Commercial banks

Source Link URL

https://qz.com/india/1047757/the-sbis-rate-cut-will-fundamentally-change-how-savings-bank-accounts-are-viewed-in-india/

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