SBI Chief lends his views on savings rate deregulation
By Neelima Shankar
May 3, 2011
Print    Email    RSS   

The Reserve Bank of India has recently brought up a discussion paper regarding deregulation of savings bank interest rates. Addressing his views on the same, Chairman of the largest lender of the country, State Bank of India, Mr Pratip Chaudhuri said that if deregulation sets in, atleast a part of the Rs 9 lakh crore people save with themselves would get circulated in the economy.

He said that the savings rate prevailing at present that is at 3.5% does not actually allure people to invest in the same.

However he said that with deregulation, a disadvantage which may set in is differential treatment done by the same bank in urban and rural areas. That is while a bank may offer high rate of interest in urban areas to attract more of the urban folk, it may offer low rates of interest in the rural areas.

Speaking about the merger of SBI and its associates, he said, "The merger is not going to happen in a day or two. Steps would be taken only next year."


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Carnival of Indian Personal Finance Blogs #3
Regular fixed deposits in India: Great way...
Tax saver fixed deposits in India earn you...
The new avatar of savings account would...
Complete guide to TDS on fixed deposits in...

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