Major private sector banks have reduced interest rates on deposits by 0.25 percent. Bank officials said this on Monday. Typically, deduction in interest rate is seen as a step before deduction of the interest payable on debt. Following the improvement in cash conditions and the reduction in the repo rate at the beginning of this month by the Reserve Bank of India, ICICI Bank and other banks including Axis Bank have taken this step.
After the central bank has cut the policy rate, banks have been asked to give the benefit to the customers so that the slowing economy can be accelerated.
ICICI Bank has cut the interest rate on maturity deposits from 0.10 to 0.25 percent. This deduction came into effect from Monday.
According to the information given on the bank's website, ICICI Bank will pay 6.75 percent interest on domestic deposits of Rs 2 crore for 290 days to less than one year. At the same time, the interest rate on deposits for two years to less than three years will be 7.30 percent.
Axis Bank has also reduced the interest rate by 0.15 percent.
The bank spokesman said, "The bank has reduced interest rate on deposits for one year." It seems that private sector HDFC Bank has also reviewed the deposit rates and revised rates will be effective from last Wednesday. Currently, information is not available about this. Significantly, the RBI has reduced the repo rate in its monetary policy. After which the speculation is being taken that the bank can also cut interest rates to benefit the customers.
