This special rate of 6.50 per cent is a limited period festive season offer beginning 10th September and ending 8th November 2021, said the private sector lender.
When RBI left the benchmark interest rate unchanged at 4 per cent at its June policy meet, it was the sixth time in a row that its monetary policy committee maintained status quo on interest rate.
An expert said that growth concerns and weak demand conditions owing to impact of second wave of COVID on employment puts constraints on any change in stance by the MPC.
The rate of interest will be linked to the borrower's creditworthiness, as reflected by their CIBIL scores.
Public Provident Fund and National Savings Certificate will continue to carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively, in the second quarter as well.
It can be noted that after responding with deep rate cuts initially, the RBI has limited itself to using non-conventional tools to help the growth process in the economy.
Details of communications between the Department of Economic Affairs and the EC received through RTI revealed that the DEA had written to the EC on March 31 seeking its approval on the rate cut.
The Reserve Bank of India (RBI) left key borrowing rates unchanged last week.
Finance Minister in a tweet said that the overnight order has been withdrawn and interest rates on small savings will be retained at level of fourth quarter of last financial year.
The interest rate for the five-year term deposit, recurring deposit Senior Citizens Savings Scheme has been raised to 7.8, 7.3 and 8.7 per cent, respectively.
The Punjab National Bank (PNB) on Thursday increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 15 bps, with immediate effect.
At a time when banks are flooded with surplus liquidity, margins get squeezed and credit growth continues plunging, more banks are likely to slash interest rates on savings bank accounts.
Effective tomorrow, the interest rate on savings bank balance of up to Rs 50 lakh has been reduced to 3.5 per cent from the current annual 4 per cent.
The Union Finance Minister said to protect the interests of senior citizens, the government has already floated a deposit scheme that guarantees 8-plus per cent interest rate.