By IANS,
New Delhi : Consumers are set to earn more on their savings accounts with the Reserve Bank of India (RBI) Tuesday de-regulating interest rates.
“It is felt that the time is appropriate to move forward and complete the process of deregulation of rupee interest rates,” said Governor Duvvuri Subbarao during the second quarter review of the apex bank’s monetary policy for this fiscal.
For deposits up to Rs.1 lakh and irrespective of the amount in the account within this limit, a bank will have to offer a uniform interest rate.
For savings bank deposits over Rs.1 lakh, a bank may provide differential rates of interest, if it chooses to do so.
“However, there should not be any discrimination from customer to customer on interest rates for similar amounts of deposits,” said the RBI Governor.
The central bank will separately issue working guidelines on deregulation.