The race has begun – Syndicate Bank to pay interest on monthly basis



Syndicate Bank was established in 1925 in Udupi, the abode of Lord Krishna in coastal Karnataka with a capital of Rs.8000/- by three visionaries – Sri Upendra Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.T M A Pai, a physician. All three shared a common passion i.e a strong commitment to social welfare. Their objective was primarily to extend financial assistance to the local weavers who were crippled by a crisis in the handloom industry through mobilising small savings from the community.

Their contribution to Indian banking industry is the Pygmy Deposit Scheme.

In another first for Indian Banks, Syndicate Bank has decided to exercise the option of paying interest on a monthly basis from next month, a change from the existing system of quarterly basis.

It was only on Tuesday i.e 29/10/13, Reserve Bank of India, in its monetary policy,  had decided to give banks the option to paying interest on savings deposits and term deposits at intervals shorter than the existing quarterly intervals, since all banks are on core banking platforms.

Some banks were not keen on this option, as they had the opinion that reducing the interval could hike their interest costs.

However, Shri M. Anjaneya Prasad, Executive Director of Syndicate Bank, said the bank’s management will meet next week to work out the modalities for implementation of the monthly interest payment structure. “This will benefit the customers. There will be no change in rates (for the monthly option),” he told media persons.

Cheers to Syndicate Bank.

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