Savings a/c should receive interest daily: RBI tells banks
Published on Fri, Feb 19, 2010 at 21:22 | Source : Moneycontrol.com
Updated at Mon, Feb 22, 2010 at 08:23
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Savings a/c should receive interest daily: RBI tells banks
There’s good news for everyone with a savings account. The Reserve Bank of India has told banks to pay interest on a daily basis to savings account holders starting April 1.
There's good news for everyone with a savings account. The Reserve Bank of India has told banks to pay interest on a daily basis to savings account holders starting April 1.
Currently, banks pay interest on the minimum balance held by the customer after the 10th of the month. The RBI had asked banks to move to this regime several months ago and banks had fiercely resisted this and petitioned against it.
The RBI, however, stuck to its word and notified the rule today. The move is likely to increase the interest outgo of banks and squeeze their margins.
