In an unprecedented move, country’s biggest lender State Bank of India has decided to link Interest Rates on the savings bank account to RBI’s repo rate from May 1, 2019.

SBI said, for people with savings bank account having an average balance of more than Rs 1 lakh, the interest rate will be 2.75% less than the repo rate from May 1st.

This move will ensure that a change in repo rate by RBI is quickly reflected in the deposit as well as in lending rates of the lender.

SBI links interest rates on deposits, loans to repo rate

In an unprecedented move, country’s biggest lender State Bank of India has decided to link interest rates on the savings bank account to RBI’s repo rate from May 1, 2019. With this SBI has become the first Indian bank to connect both deposit rate and lending rate to an external benchmark.

SBI said, for people with savings bank account having an average balance of more than Rs 1 lakh, the interest rate will be 2.75% less than the repo rate from May 1st. On the other hand for all cash credit accounts and overdraft accounts above 1 lakh rupees, the floor rate will be 2.25% above the repo rate. 

SBI links interest rates on deposits, loans to repo rate

This move will ensure that a change in repo rate by RBI is quickly reflected in the deposit as well as in lending rates of the lender.

I am Diksha Yadav, Currently pursuing my Post Graduate Diploma in English Journalism from Indian Institute of Mass Communication. I have interned in The Hindu(Features Department) and W5 Communications(Public Relations). I have also worked as a PR professional in PRIntel Advisory where I was handling Homekraft, Amplus, MoMagic, and other corporate clients and was responsible for developing the first line of communication with media for press coverages. Besides, I had worked as a content writer in Buddymantra, Portology, Aviity, and UC News. My areas of work is to deliver first-hand reports, media coverages, reporting, editing, making newspapers, magazines, anchoring, script writing and creating content in different genres. I also have knowledge of Quark and InDesign (Basic). I am quick in developing solid media relations across regions and develops brilliant content for clients for media dissemination.