Several major banks have not updated the savings account interest rate on their websites even a week after the Reserve Bank of India hiked it to 4%
All the major banks, which are usually prompt in updating their websites with the changes in interest rates on loans and other schemes, don't seem as interested in updating their customers about the recent hike in the savings account interest rate.
On 3rd May 2011, the Reserve Bank of India (RBI), issued a notification to all banks, including state and central co-operative banks, primary (urban) co-operative banks, scheduled commercial banks, saying that "it has since been decided to increase the interest rate on domestic and ordinary non-resident savings deposits as well as savings deposits under the Non-Resident (External) Accounts Scheme by 0.5%, from 3.5% to 4% annum, with immediate effect." The savings account rate has been hiked after 19 years.
However, it has been more than a week and yet most banks, including state-run banks, have not updated the data about the savings interest rate on their websites, Moneylife found after checking the websites of banks which come under the RBI's regulation.
While it is not mandatory for banks to update their websites regularly, this indicates how much the banks are actually interested in updating their customers, when this involves an increase in the cost of funds for the banks.
State-run banks, including the Central Bank of India and the State Bank of Hyderabad, still show the savings account interest rate as 3.5% on their websites. Although some like the State Bank of India, State Bank of Patiala and State Bank of Travancore, have changed this to 4%.
Axis Bank, Bank of Maharashtra, City Union Bank, Coastal Local Area Bank Ltd and Karnataka Bank Ltd still show the savings account interest rate at 3.5%.
Among the foreign banks that have not bothered to change the rate on their websites are Abu Dhabi Commercial Bank Ltd, Barclays Bank India, BNP Paribas and Chinatrust Commercial Bank.
It was also observed that officials at some of the banks were not aware about the change in the savings account rate announced by the RBI last week. When Moneylife contacted an executive at BNP Paribas to find out the latest savings interest rate, she said that "the general savings account interest rate is 3.5%".
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