The State of Bank of India (SBI) has reduced interest on fixed deposits (FD) following RBI's decision to lower the repo rate by 75 basis points to 4.4% on Friday. According to the new rates, those having SBI FD's for a period between 1 year to 10 years will get 5.7% interest. FDs between 180 days to 1 year will get 5% interest, between 46 to 179 days, people will get an interest rate of 4.5% while those having FDs between 7 days to 45 days will get 3.5% interest rate. RBI's relief measures have come amid coronavirus lockdown in the country as confirmed cases continue to rise affecting businesses across sections amid global COVID-19 crisis.
This is the second time when SBI had cut interest rate on fixed deposits after it lowered it on March 10. Fixed deposits is one of the secured way to earn interest on your savings and is one of the most used services by bank customers. However, India's largest public sector bank SBI said that senior citizens will still be eligible to get 50 basis points more on the interest rates in comparison to the general public. The interest rates will be applicable on fixed deposits of less than Rs 2 crore.
All term loan EMIs automatically deferred by 3 months: SBI
After RBI's 3-month moratorium allowing banks to suspend EMIs for a period of 3 months amid COVID-19 lockdown, the SBI on Friday announced that all term loan EMIs will be deferred by three months automatically. That means EMIs for all your home loans, car loans, personal loan/term loans get deferred by three months. Announcing the decision, SBI Chairman Rajnish Kumar told CNBC TV, "Installments will get automatically deferred by 3 months for term loans and customers don't have to apply to banks for it." SBI's announcement comes within hours of RBI governor Shaktikanta Das announced a 3-month moratorium on loan EMIs.