New Delhi: Country’s largest lender State Bank of India (SBI) has reduced the interest rate on saving deposits with balance up to Rs 1 lakh by 25 bps to 3.25 per cent . The new rates will be effective from November 1st 2019. Issuing a notification, the bank said, “In view of the adequate liquidity in the system, interest rates on savings accounts with balances up to Rs. 1 lakh would be lowered by 25 basis points (bps) or 0.25 percentage points.”
However, the interest rates on savings account deposits above Rs. 1 lakh remain unchanged.
Earlier last month, the SBI had slashed its MCLR (Marginal Cost of Funds based Lending Rate) on loans across all tenors by 10 basis points. Besides, it had also reduced interest rates on term deposits across all maturities by up to 25 basis points.
The bank had also reduced its penalty for not maintaining the monthly account balance by 80 per cent that means, if a person’s account balance is less than 75 per cent of the stipulated amount, then a penalty of Rs 80 plus GST will be deducted. Similarly, if the balance is between 50 to 75 per cent of the stipulated amount, Rs 12 plus GST will be deducted. If the balance is less than 50 per cent of the required amount Rs 10 plus GST will be deducted.
The SBI had also cut the ATM cash withdrawal limit from Rs 40,000 to Rs 20,000. From the end of this month, SBI customers will be able to withdraw only Rs 20,000 per day. The move aims to check an increase in fraudulent transactions and increase digital penetration in the country by pushing people towards cashless transactions. The new limit on debit cards will be effective from October 31.