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Saturday 23 October 2021
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SBI cuts savings bank rate to 3.5%

The decline in rate of inflation and high real interest rates have prompted State Bank of India to cut the savings bank deposits rate from 4% to 3.5%  on deposits below Rs. 1 crore.

This cut in savings bank rate will prompt many banks to follow suit. India’s largest bank said savings bank deposits above Rs. 1 crore will continue to earn 4 % interest.

The bank said there has been a significant outflow of current account, savings account deposits post-demonetisation. Hence, the cut in SB rate will enable it to maintain the marginal cost of funds based lending rate at the current level.

 




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