Hyderabad, June 18: The Reserve Bank today said it wants the lenders to fix their individual rates for savings deposits, as part of the financial sector reforms.
“Deregulation of the interest rates, including savings rates, is an important way forward for financial sector reforms. The base rate system that will come in to effect from July 1 is also an important reform step,” the RBI Governor D Subbarao said here today.
Currently, banks can fix their own interest rate on savings deposits only above Rs 2 lakh. Up to Rs 2 lakh, the rate is fixed by the RBI, which at present is 3.5 per cent and is being calculated on a daily basis now from April 1. Once freed from RBI control, banks can fix their own individual rates for savings deposits as well.
–Agencies