From Deccan Chronicle :
RBI mulls rate war for saving accounts
June 17: You may soon be earning more on your savings bank accounts. India’s banking regulator, Reserve Bank of India, is in favour of deregulating all interest rates, including savings bank deposit rates. Currently, the interest rate on savings account is 3.5 per cent. If it is deregulated, banks may be able to raise it based on their cost structure and funding needs. This would raise the cost structure for all banks, but those where savings accounts form a higher fraction of the total deposit base would see a greater impact.
“We have initiated a debate in the last policy..., the deduction is very clear, clear in favour of deregulating all interest rates, including savings bank,” RBI deputy governor, Mr K.C. Chakrabarty, said on Thursday. “But the decision will be taken, when to do that, after having adequate debate on the issue,” he added.
