New Rules of SBI on saving accounts and Short term loans

State Bank of India (SBI) has introduced new interest rates on large savings account deposits with balance above Rs 1 lakh as well as short-term loans like overdraft and cash credit. By doing this, SBI has become the first bank which has linked deposit accounts and short term loans to an external benchmark.
SBI will link its interest rate on large savings account deposits and short term loans to RBI’s repo rate which would be effective from May 1, 2019.
Currently, repo rate is 6%. So according to external benchmarking formula, the large savings account with balance above Rs 1 lakh earn less interest rate as compare to small savings account. However, if the repo rate increases and goes above 6.25% then large savings account will earn more interest rate than small savings account.
About SBI : Headquarter: Mumbai; Chairperson: Rajnish Kumar; Founded: 1 July 1955; Tagline: With you all the way, Pure banking Nothing Else, The Nation’s banks on us.