Lok Sabha Question No. 4726 (UNSTARRED), answered on 2018-03-23
Subject: Interest Rates on Retail and Bulk Deposits
Ministry: FINANCE
Asked by: R.P. MARUTHARAJAA

## Government of India Ministry of Finance Department of Financial Services

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## LOK SABHA

Unstarred Question No. 4726

To be answered on March 23, 2018/Chaitra 2, 1940 (Saka)

## Interest Rates on Retail and Bulk Deposits.

QUESTION

4726. SHRI R.P. MARUTHARAJAA:

Will the Minister of FINANCE be pleased to state:

(a)  whether  the  Government has any plan to hike interest rates on retail and bulk deposits, if so, the details thereof; (b)  whether  the  increase  in  rate  of  interest  is  based  on  point  basis  on  the  bulk deposits and if so, the details thereof; (c) whether the State Bank of India (SBI) has announced any interest rates on the retail bulk deposits; and

(d) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI SHIV PRATAP SHUKLA)

(a)  and  (b):  Reserve  Bank  of  India  (RBI)  has  informed  that  the  interest  rates  on deposits  have  been  deregulated  and  banks  are  free  to  fix  the  interest  rates  on deposits  with  the  approval  of  their  respective  Boards  subject  to  the  instructions contained in RBI  Master  Direction entitled 'RBI (Interest Rate  on  Deposits) Directions,  2016'  issued  vide  DBR.  Dir.  No  84/13.03.00/2015-16  dated  March 3.2016. (c) and (d):  Yes, Sir. State Bank of India has increased interest rates for retail term deposits (deposits below Rs. 1 crore) and for bulk term deposits (deposits of Rs. 1 crore to Rs. 10 crore and deposits of Rs. 10 crore and above) effective from 28 th

February, 2018. Details are Annexed.

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## Annexure to Lok Sabha Unstarred Question No. 4726

## State Bank of India Retail term deposit interest rates (deposits below Rs. 1.00 crore):

(figures in %)

| Tenors                        |   Previous Rates for public |   Revised for Public w.e.f. 28.02.2018 |   Previous Rates for Senior Citizen |   Revised for Senior Citizen w.e.f. 28.02.2018 |
|-------------------------------|-----------------------------|----------------------------------------|-------------------------------------|------------------------------------------------|
| 7 days to 45 days             |                        5.25 |                                   5.75 |                                5.75 |                                           6.25 |
| 46 days to 179 days           |                        6.25 |                                   6.25 |                                6.75 |                                           6.75 |
| 180 days to 210 days          |                        6.25 |                                   6.35 |                                6.75 |                                           6.85 |
| 211 days to less than 1 year  |                        6.25 |                                   6.4  |                                6.75 |                                           6.9  |
| 1 Year                        |                        6.25 |                                   6.4  |                                6.75 |                                           6.9  |
| Above 1 year to 455 days      |                        6.25 |                                   6.4  |                                6.75 |                                           6.9  |
| 456 days to less than 2 years |                        6.25 |                                   6.4  |                                6.75 |                                           6.9  |
| 2 years to less than 3 years  |                        6    |                                   6.5  |                                6.5  |                                           7    |
| 3 years to less than 5 years  |                        6    |                                   6.5  |                                6.5  |                                           7    |
| 5 years and up to 10 years    |                        6    |                                   6.5  |                                6.5  |                                           7    |

## State Bank of India Bulk term deposit interest rates (Rs 1 crore to Rs. 10 crore)

| Tenors                |   Previous Rates for public |   Revised for Public w.e.f. 28.02.2018 |   Previous Rates for Senior Citizen |   Revised for Senior Citizen w.e.f. 28.02.2018 |
|-----------------------|-----------------------------|----------------------------------------|-------------------------------------|------------------------------------------------|
| 7 days to 45 days     |                        5.25 |                                   5.75 |                                5.75 |                                           6.25 |
| 46 days to 179 days   |                        6.25 |                                   6.7  |                                6.75 |                                           7.2  |
| 180 days to 210 days  |                        6.25 |                                   6.7  |                                6.75 |                                           7.2  |
| 211 days to < 1Year   |                        6.25 |                                   6.75 |                                6.75 |                                           7.25 |
| 1 Year to 455 days    |                        6.25 |                                   6.75 |                                6.75 |                                           7.25 |
| 456 days to < 2 Years |                        6.25 |                                   6.75 |                                6.75 |                                           7.25 |
| 2 Years to < 3 Years  |                        6    |                                   6.75 |                                6.5  |                                           7.25 |
| 3 Years < 5 Years     |                        6    |                                   6.65 |                                6.5  |                                           7.15 |
| 5 Years to 10 years   |                        6    |                                   6.25 |                                6.5  |                                           6.75 |

## State Bank of India Bulk term deposits interest rates (above Rs. 10 Crore)

| Tenors                |   Previous Rates for public |   Revised for Public w.e.f. 28.02.2018 |   Previous Rates for Senior Citizen |   Revised for Senior Citizen w.e.f. 28.02.2018 |
|-----------------------|-----------------------------|----------------------------------------|-------------------------------------|------------------------------------------------|
| 7 days to 45 days     |                        5.25 |                                   5.75 |                                5.75 |                                           6.25 |
| 46 days to 179 days   |                        6.25 |                                   6.7  |                                6.75 |                                           7.2  |
| 180 days to 210 days  |                        6.25 |                                   6.7  |                                6.75 |                                           7.2  |
| 211 days to < 1Year   |                        6.25 |                                   6.75 |                                6.75 |                                           7.25 |
| 1 Year to 455 days    |                        6.25 |                                   6.75 |                                6.75 |                                           7.25 |
| 456 days to < 2 Years |                        6.25 |                                   6.75 |                                6.75 |                                           7.25 |
| 2 Years to < 3 Years  |                        6    |                                   6.75 |                                6.5  |                                           7.25 |
| 3 Years < 5 Years     |                        6    |                                   6.65 |                                6.5  |                                           7.15 |
| 5 Years to 10 years   |                        6    |                                   6.25 |                                6.5  |                                           6.75 |

Source: SBI