by Reserve Bank of India hiking key policy rates and savings deposit rate by 50 basis points each.
RBI Governor Subbarao said. “Pending a final decision on that, we have decided to increase the savings bank deposit interest rate from the present 3.5% to 4.0% with immediate effect,”
RBI Has Increased the Repo rates, Reverse Repo Rates, Bank Saving Rate etc by 50 Basis Point.
To check inflation, Reserve Bank of India raised its short term lending (repo) rate by 50 basis points to 7.25 per cent, while lowering the economic growth projection to 8 per cent for the current fiscal.
RBI has also increased the saving bank rate by 50 basis points to 4 per cent to give higher returns to depositors in the wake of high inflation.
The reverse repo, the rate at which bank park funds with RBI, has been raised by 50 basis points to 6.25 per cent.