State Bank of India (SBI), the largest government bank, has taken big steps in the first of its kind in the country. The bank is changing the system of interest on home and auto loans from 1st May. Let's learn everything about it ...
The rule will be applicable from May 1. SBI said in a statement late evening that the new rates would be effective from May 1. With this step, the benefit of the reduction in the policy rate (repo rate) of the Reserve Bank will be available to the customers immediately. The Reserve Bank has been raising the issue repeatedly with banks that as much as it cuts the repo rate, banks do not give such benefits to their customers.
In a statement, SBI said in its statement, "From May 2019, to resolve the issue of instant change in the policy rates of the RBI, we can add interest rate for savings bank deposits and short-term term loans to the Reserve Bank's repo rate. Has decided.
RBI decision- The floating interest rates of different categories for the borrowers of the Reserve Bank of India will now be linked to the External Benchmark. RBI has proposed to replace MCLR with the exclusional benchmark. RBI has proposed in its statement of Development and Regulatory Policies that from April 1, 2019, the bank will use the existing benchmark system, such as prime lending rate, base rate, marginal cost of fund based lending rate (MCLR), external benchmarks.
