With the revision, term deposit between 180 days to 1 year would earn 9 percent against existing 8.50 percent, it said. The new rates would be effective from November 4, it added. On Thursday, State Bank of India (SBI) raised fixed deposit rate by 0.2 percent on select maturity. Term deposit between 180-210 days attracts interest rate of 7 percent against earlier rate 6.80 percent.

However, there is no change in the interest rates for other maturities in less than Rs 1 crore bracket. Earlier this week, RBI raised short-term lending (repo) rate by 0.25 percent to 7.75 percent making cost of fund expensive for the banks. At the same time, the RBI lowered marginal standing facility (MSF) rate by a similar margin to 8.75 percent.

Accordingly, the bank rate is reduced to 8.75 percent with immediate effect. Consequently, the reverse repo rate is adjusted upward to 6.75 per cent. The RBI has left unchanged other rates such as the cash reserve ratio at 4 percent and the mandatory holdings in government securities and other liquid assets as a solvency measure (SLR) at 23 percent.


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