SBI, the 1st bank to link its savings & loan interest rates to the RBI's repo rates
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SBI becomes the first bank to link its saving & loan interest rates to the RBI's repo rates. This move is significant as the effective interest rate on savings above RS 1 lakh deposit will come down to 3.25% from 3.5% from May 1. But the short-term linking with a limit of above Rs 1 lakh will now attract an interest rate close to 8.25%. The central bank noted slow transmission of monetary policy easing to customers by banks.