Deregulation of savings rate favored by RBI
By Neelima Shankar
Apr 29, 2011
Print    Email    RSS   

Savings bank account rates may soon get deregulated and thus start earning more for the customer. Currently while all savings accounts earn a fixed 3.5% interest for the customer, with deregulation, they might start earning returns in the range of 4% to 6% per annum.

However, with deregulation, one prospect may also be that the interest rates for savings account dip below the 3.5% mark.

Regulator, Reserve Bank of India has brought out a discussion paper in this regard yesterday.

If deregulation sets in, it will aid in improving the transmission mechanism of RBI. In this way banks will also have to move savings bank rates according to the policy rate movement guided by RBI.

Banks are however not in agreement with this idea of the apex bank.


(Comments Posted : 1) Post Your Comments
1. Deregulation of savings account interests is a must on the perspective of the Global scenario.
If Gold is the economic yardstick of currency fluctuatuions, then, why not savings account interest rates!
A good governance should try to minimise to the fullest extent the erosion of money value of its citizens and to maintain a balanced standard of living of its people the endevour is the cry of the hour.
AVIJIT MANDAL (Posted: Apr 30, 2011)
Show All Comments
 Select a product:

 Select a product:

Plan your tax, don’t evade it
J&K Bank raises PLR
Carnival of Indian Personal Finance Blogs #3
Infrastructure bonds: another tax saving...
An Overview of Wealth Management Services...

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive