Banks likely to cut savings deposit rates

Moneycontrol BureauIt is likely that two PSU banks will cut savings deposit rates, reports Mint. Banks have been coming to terms with the huge liquidity in the system ever since the popular Rs 500 and Rs 1000 notes were rendered illegal on November 8.This reduction in savings rates, if it happens, will be the first such cut enforced after the RBI deregulated it five years ago. This could trigger a cut in lending rates, too, adds the article."The time has come to cut interest rates on savings deposit rates. We could expect an announcement on the new rate with effect from January," said the Chairman of a mid-sized public sector bank to the newspaper. The bank official mentioned that he was eyeing at least 50 basis point cut from the current 4 percent.