A step taken by Reserve Bank of India (RBI) to upgrade interest rate of savings account in different banks in India.RBI things that may rise cost of funds of banks and also to push up people to save a large amount of money in savings account.
People must gain more if bank increase its interest rates.Central bank asked banks to offer people a uniform rate on saving less than 1 lack and for more it will be different.Now in savings account 4 % interest is giving.Now in savings account you are getting interest on daily basis,but after rise up of interest rate general people may not gain more if they frequently withdraw and deposit money.
As already large banks like SBI,HDFC,ICICI have a large number of share in market,so the may not increase interest.This case can happen for small banks.But it is true that if small banks increase their interest rate they can build up a healthy share in market and also a good fund.
Already newly come private bank YES Bank thinks to increase their interest rate up to 6 % .YES Bank CEO congrats RBI for its great move in last twenty years.
But SBI chairman Pratip Chaudhuri do not accept this offer now,he will think letter on it.
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