New Delhi: The recent hike in CRR by Reserve Bank of India (RBI), has put pressure on banks' margins. To minimize the impact of the RBI's step, banks have now started to reduce interest rates on various deposit schemes.

Union Bank of India, had reduced its deposit rates for various tenures from 25 to 100 basis points last week, and Bank of Baroda (BoB) has also reduced interest rates on NRE term deposits with immediate effect.

Centurion Bank of Punjab announced that from November 5, its deposits will carry a reduced interest rates. Deposits for one to less than two years will see a 50 basis point rate cut and will now be available at 8 percent from the earlier 8.50 percent. Deposits of 13 months 15 days will see a rate cut of 25 basis points and will now be available at 9 percent instead of 9.25 percent.

State Bank of India (SBI) has introduced a new time slab of 550 days in its deposits. It is offering an increased interest rate of 75 basis points from 8 percent earlier to 8.75 percent. Senior citizens will enjoy an additional 50 basis point interest benefit and can earn 9.25 percent interest on deposits of this term.