Wednesday, 16 March 2016

Pay interest on savings account on quarterly basis, RBI tells banks

The interest rate on savings bank account is calculated on a daily basis since 1 April 2010. 

Reserve Bank of India logo
The Reserve Bank of India (RBI) has asked banks to pay interest on their customers’ savings accounts on a quarterly basis or shorter duration, according to reports.
Report says that curretly the interest is credited in savings account on a half-yearly basis. 

The interest rate on savings bank account is calculated on a daily basis since 1 April 2010.
“Interest on savings deposit shall be credited at quarterly or shorter intervals (on domestic savings deposits),” the RBI said in a circular issued on 3 March.

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