InvestorQ : Why has SBI cut the deposit rates even though the RBI has not cut repo rates?
ishika Banerjee made post

Why has SBI cut the deposit rates even though the RBI has not cut repo rates?

Answer
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Niti Shenoi answered.
8 months ago


SBI has cut lending rates and has simultaneously cut the deposit rates also. Now banks cut lending rates and deposit rates simultaneously. Though RBI did not cut repo rates, they infused liquidity which was a signal to banks to cut rates. The latest FD rates on SBI deposits are effective from 10th February. In view of surplus liquidity in the system SBI realigned its interest rate on Retail Term Deposits (less than Rs.2 Crs) and Bulk Term Deposits (Rs.2 Crs & above) w.e.f. February 10, 2020. SBI also cut Term Deposits rates by 10-50 bps in the Retail segment and 25-50 bps in the Bulk segment. The bank has cut FD rates across all tenors except for those with maturity period 7 days to 45 days. It has kept rates unchanged on these very short end deposits.