India’s largest bank State Bank of India has moved to a new interest rate regime on large savings account deposits as well as short-term loans. Earlier, SBI had announced that it will link its interest rate on savings account with a balance above Rs1 lakh and short-term loans like overdraft and cash credit facility to Reserve Bank of India’s repo rate, effective 1 May 2019.
The interest rates on large SBI savings account deposits and interest rate on some short-term loans will automatically change as and when RBI changes its repo rate. This will help in better transmission of RBI’s policy rates into the banking system.
Source- DD News
Static/Current Takeaways Important For LIC AAO Mains Exam:
- SBI Chairperson: Rajnish Kumar, Headquarters: Mumbai, Founded: 1 July 1955.