The largest public sector bank in India, State Bank of India (SBI), has increased base rate by 0.10 percent or 10 basis points (bps), according to its website. The new rate, that is, 7.55% per annum, will be effective from December 15, 2021.
Earlier, in September, the bank lowered the base rate by 5 basis points, to 7.45 percent.
The Reserve Bank of India sets the minimum rate of interest, which all banks use as their standard rate. Banks are not allowed to lend at a rate lower than the central bank’s predetermined base rate. SBI also hiked the interest of fixed deposits above Rs 2 crore, with effect from December 15, 2021.
The revised interest rates will apply to new deposits as well as renewals of maturing deposits. NRO term deposit interest rates will be matched with domestic term deposit interest rates. These interest rates will also apply to domestic term deposits held by cooperative banks, according to SBI website.
