The first clarification under Deregulation of Savings Bank Deposit Interest Rate has been issued by Reserve Bank of India.
The Notification No is RBI/2011-12/368-DBOD.Dir.BC. 75/13.03.00/2011-12 dt.25/01/2012 can be viewed at Clarification
In brief, the notification states that the interest rates applicable on domestic savings bank held by residents will be determined on the basis of end-of-day balance in the account.
Hence, Banks while calculating interest on domestic savings bank deposits will be required to apply the uniform rate set by them on end-of-day balance up to Rs. 1 lakh and for any end-of-day balance exceeding Rs.1 lakh, banks may apply the differential rate(s) as fixed by them.
The clarification was necessary as Bankers had been approaching RBI for clarifications. As the clarifications are not on public domain, it will difficult to guess the nature of the clarifications.
Maybe the time has come for Banker’s clarifications to be placed on the public domain, atleast in cases wherein Banks themselves have sought clarifictions.