deposit rates

Small savings rates may see a cut going forward: Sources

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Small savings rates may see a cut going forward: Sources

While loans are set to become cheaper for customers with the Reserve Bank of India (RBI) opting to cut the repo rate by 25 basis points, deposit rates including those of small savings may be cut going forward. While banks are likely to cut their deposit rates in line with the policy rate, sources indicated … Read more

What does a rate cut after 5 years mean for the economy? Dinesh Kumar Khara explains

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What does a rate cut after 5 years mean for the economy? Dinesh Kumar Khara explains

Dinesh Kumar Khara, Former Chairman, SBI, says where banks have primarily adopted the repo rate as their external benchmark, there will be the quickest transmission of changes. However, they may not be able to adjust their deposit rates immediately, as such adjustments typically occur with a delay. In contrast, if the loan portfolio is linked … Read more