The Reserve Bank of India has deregulated the savings accounts rate for all the State and Central Co-operative Banks. These banks can now set the interest rate on savings account deposits on their own. Earlier, in October it deregulated the rates for commercial sector banks. Recently, savings account rates for RRBs were also deregulated by the apex bank.

There are however a few regulations that the banks will have to follow while deciding the rates. In a notification the apex bank said, "Each bank will have to offer a uniform interest rate on savings bank deposits up to Rs 1 lakh, irrespective of the d the rates for commercial sector banks. Recently, savings account amount in the account within this limit".

The banks are free to offer any interest rate above Rs. 1 lakh. The interest rate, however, shall be the same for the deposits of same amount accepted on same date.