Mumbai, Jan 26: The Reserve Bank of India (RBI) on Wednesday said that interest rates applicable on the domestic savings bank deposits will be determined on the basis of end-of-day balance in the account, reports The Hindu.
While calculating interest on domestic savings bank deposits, banks are required to apply the uniform rate set by them on end-of-day balance up to Rs.1 lakh.
For any end-of-day balance exceeding Rs.1 lakh, banks could apply the differential rates as fixed by them.
“Banks may ensure that interest rate is applied on the end-of-day balances of all domestic savings deposit accounts and no discrimination is made at any of its offices. Prior approval of the Board/Asset Liability Management Committee (if powers are delegated by the Board) may be obtained by a bank while fixing interest rates on such deposits,” the Reserve Bank added.