Anjali Kumari And Abhijit Lele

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25-bp deposit rate hike likely this festival season

25-bp deposit rate hike likely this festival season

Rediff.com20 Sep 2023

The Reserve Bank of India's (RBI's) decision to withdraw the incremental cash reserve ratio (I-CRR) is expected to benefit banks during the festival season. They are likely to increase deposit rates by up to 25 basis points (bps) in select maturity buckets. The rise in demand for funds to cover tax payments and meet quarter-end business targets could influence rate decisions by banks, according to bankers and money market executives.