The country’s largest bank State Bank of India (SBI) has increased the base rates.
The country’s largest bank State Bank of India (SBI) has increased the benchmark lending rate / base rate by 0.1 percent. This move of SBI can have an impact on other banks as well and they can also increase the base rates. This will make retail loans costly in the coming times. SBI has increased the base rate from 7.45 per cent to 7.55 per cent. The new rates have become effective from 15 December 2021. Earlier in September, the bank had reduced its base rate by 0.05 per cent to 7.45 per cent. Explain that according to the base rate, banks fix the rates of retail loans.
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No change in EBLR
SBI has linked the repo rate with the External Benchmark Lending Rate (EBLR) from January 2019. SBI has not changed the EBLR rate and it fluctuates with the change in the benchmark interest of the central bank RBI. A few days ago, in its December monetary policy, the RBI has decided to keep the repo rate stable at 4 percent. This was the ninth time in a row that the central bank had kept the benchmark lending rate constant to support the growth rate.
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Increased interest on FDs above Rs 2 crore
SBI has also increased the interest rate on FD (Fixed Deposit) of higher amount. The bank has increased the interest rates by 0.10 percent on FDs above Rs 2 crore. Now FDs above Rs 2 crore will get interest at the rate of 3 per cent. Senior citizens will get interest at the rate of 0.5 percent more i.e. 3.5 percent. This new interest rate of FD has come into effect from 15 December 2021.
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