Winning Bizness Desk

Mumbai. The Reserve Bank of India wants something that will benefit all bank customers. Now, the apex bank wants depositors to get more interest on their money, though banks are still avoiding it. Big private and government sector banks are still giving interest ranging from 2.70 percent to four percent on the savings accounts. This is happening despite the fact that almost one-third of the total deposits of banks are from saving accounts. Yet customers are getting very little interest on savings accounts. The Reserve Bank of India (RBI) has increased the policy rate by 2.50 percent to 6.50 percent in the last financial year. In such a situation, the Apex Bank wants that just as the banks put the burden on the customers by immediately increasing the interest on loans, the interest rates on deposits should also be increased on the same lines. RBI in its meetings has been motivating banks to increase savings deposit rates. Also, there may be a need to increase it again.

Banks have no immediate plans to increase the rate

The operating costs and technical costs of maintaining a savings account are quite high, said an official of a private sector bank. Even an increase of 20 bps-25 bps will impact the entire balance sheet of banks. This may also affect the margins of banks. The RBI, in its monetary policy report, said the rise in fixed deposit rates has outpaced lending rates in the current tightening cycle. However, rates on savings deposits have remained almost unchanged. The increase in banks' costs has reduced due to increase in interest rates on loans. Due to this, there is a jump in their margins. Yes Bank, Kotak Mahindra Bank and IndusInd Bank have recently said that they have no plans to increase their savings deposit rates.