SBI: Reduce fixed deposit minimum tenure to 3 days

SBI: Reduce fixed deposit minimum tenure to 3 days

 

Initially, SBI was paying 8.5 per cent interest for the scheme, now brought down to 6.5 per cent.

 

GRAND SCHEME

Unfixed deposit scheme of SBI, launched earlier in the year, became a huge success as the bank allows depositors to withdraw funds after seven days Initially, SBI was paying 8.5 per cent for the scheme, now been brought down to 6.5 per cent SBI had earlier requested RBI to allow banks to offer interest rate to current account holders. Present regulations do not allow this

 

Speaking on the issue of interest rates on savings bank deposits, SBI Chairman Pratip Chauduri said he had requested the regulator to reduce the tenure of minimum deposit from seven days to three days.

“We think a savings bank is not about rate of interests alone. It is about the facilities, the experience and so on. In fact, I am requesting RBI, time and again, that the tenure of minimum deposit be reduced from seven days to three days,” he said.

While most banks are facing difficulties in mobilising resources, reflected from the fact that deposit growth has been sluggish for two years, SBI’s deposit mobilisation remained robust. Chaudhuri said the bank had excess liquidity of Rs 55,000 crore to Rs 60,000 crore.

The central bank has remained non-committal on SBI’s request, bankers said. “If the tenure of a minimum fixed deposit is brought down to three days, then it is as good as a current account, which does not offer any interest. RBI has reservations on the request,” said a banker.

Bankers said in a recent interaction with RBI officials, SBI had also requested the central bank to allow banks to offer interest rate to current account holders. Present regulations prohibit this.

Source : BS