Industry association, Assocham has placed demand for deregulation of savings bank account rates. They back their demand saying that with deregulation setting in there would be an increase in competition amongst banks which would in turn benefit customers.

Regulator Reserve Bank of India has announced to bring up a discussion paper in this regard soon.

Currently savings bank rates are fixed at 3.5% for all banks.

"Let there be a competitive environment where cost reduction determines the capability, and not regulated interest getting access to low-cost funds," it said.