State Bank of India (SBI) and ICICI Bank have announced a reduction in interest on savings account deposits. SBI has cut the interest rate by five basis points and ICICI by 25 basis points.
After this deduction, SBI’s deposit interest rate is 2.70. The bank also cut interest rates in April. At that time, SBI reduced the interest rate from 3.0 percent to 2.75 percent.
ICICI Bank has reduced the interest on deposits from 3.25 per cent to 3.0 per cent from less than 50 lakh. The interest rate on deposits of 50 Lakh or more has been reduced from 3.75 to 3.50 percent. SBI last week cut interest rates by 40 basis points for all term deposits.
Meanwhile, SBI has also announced the creation of a Financial Inclusion and Micro Markets (FI&MM) department to better serve the customers of rural and semi-urban areas. Under this new section, the bank will mainly give loans to agriculture and allied activities and micro and small enterprises. About 8,000 branches in rural and semi-urban areas have been selected for this special service.