The SB Deposit rate has been increased from 3.50% to 4.00% from today i.e 03/05/2011, vide RBI Notificaton-RBI/2010-11/507,DBOD.Dir.BC. 90 /13.03.00/2010-11 dt. May 3, 2011
The relevant RBI notification is @
The changes in interest rates are applicable to the following
01) Domestic and ordinary Non-Resident savings deposits
02) Savings deposits under Non-Resident (External) Accounts Scheme
Way back in 2003, RBI had directed banks to reduce the Interest Rates on SB Deposits from 4.00% to 3.50% @ http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=1088&Mode=0#n1
The immediate effect will be on the short-term fixed deposit rates.
Cheers to the customers