New Delhi:
The Reserve Bank of India or RBI has decided to deregulate the savings bank deposit interest rate with immediate effect.
This means customers can expect to earn a higher rate on their deposits.
Currently, the savings rate is at 4%.
Banks are free to determine their savings bank deposit interest rate, subject to two conditions. 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. Secondly, for savings bank deposits over one lakh, a bank may provide differential rates of interest, if it so chooses. However, there should not be any discrimination from customer to customer on interest rates for similar amount of deposit.