Action of banks started after cuts in repo rate, this private bank reduced interest rates on savings account

Agency:News18Hindi

Last updated:February 17, 2025, 20:19 IST

After the repo rate cut from the Reserve Bank of India (RBI), banks are moving towards cuts in interest rates on your deposit. Now Kotak Mahindra Bank cut the interest rates received on savings account …Read more

New Delhi. Recently, the Reserve Bank of India (RBI) cut the repo rate for the first time after 5 years. After 5 years, the RBI decided to reduce the interest rate from 6.50 percent to 25 basic points to 6.25 percent. The repo rate is the benchmark rate on which RBI lends money to commercial banks. After the repo rate reduction, banks are now moving towards cuts in the interest rates received on FD and savings accounts.

After the RBI announcement, RBL Bank announced to reduce the interest rates on its savings account while DCB Bank has reduced interest rates on FD. Now Kotak Mahindra Bank, a large bank in the private sector, has announced to reduce the interest rates on the savings account. The bank has reduced the interest rate on a saving account with daily balance from Rs 5 lakh to Rs 50 lakh. The new interest rates have come into force from 17 February 2025.

0.50 percent reduction in interest rates
On a savings account with daily balance account up to Rs 5 lakh, the bank will pay interest at the rate of 3 percent per annum. There has been no change on this. The bank has reduced the interest rates from 3.50 per cent to 3 feet on daily balance of up to Rs 5 lakh and up to Rs 50 lakh. The bank has also reduced the interest rate of savings account from 4 per cent to 3.50 per cent for balance of more than Rs 50 lakh.

RBL bank reduced interest rates
RBL Bank has deducted 25 basis points in interest rates on small balance accounts. The bank’s new interest rates have been implemented from February 15, 2025.

DCB Bank cut interest rate
DCB Bank has reduced interest rates on fixed deposits. For FDs below Rs 3 crore, the bank has cut interest rates by up to 0.65 per cent for some tenure. The bank’s new rates have come into force from February 14, 2025.