SBI Cut Interest Rates on Savings Bank Deposits
India's largest lender State Bank of India (SBI) on Monday cut interest rates on savings bank deposits by 0.5 per cent. Banks were flushed with liquidity after Government's demonetization move last year.
The new interest rates on savings bank deposits will be come into effect from 31st July.
Now, for saving deposits balance up to Rs 1 crore, SBI will offer a rate of 3.5 per cent as compared to 4 percent earlier, the bank said.
However, for saving deposits balance above Rs 1 crore, rate of interest has been retained at 4 per cent per annum.
To promote digital banking, SBI had earlier reduced charges levied on Real-time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) transactions up to 75 per cent.
NEFT and RTGS are electronic money transaction mechanisms used to transfer money between two different bank accounts anywhere in the country.