The country’s largest lender, the State Bank of India (SBI), and the largest private sector bank, ICICI Bank, increased lending rates by up to 20 bps.
At its review meeting on Wednesday, the RBI increased its inflation forecast for Q4 to 5.1 per cent, compared to 4.3-4.7 per cent for the second half.
Small Savings schemes will continue to be attractive as some of them enjoy income tax benefits and additional interest rate spreads - Press Release from Finance Ministry.
Revision of interest rates for Small Savings Schemes for the period from 1st April 2017 to 30th June…
Department of Posts circular regarding Revision of interest rates for Small Savings Schemes for the period from 1st April 2017 to 30th June 2017
Finance Minister Arun Jaitley questioned the high interest rates on savings that translate into higher cost of lending and sluggishness in the economy.
The PPF interest rates at 8.1 per cent remains "reasonably lucrative", he said, adding nowhere in the world, interest rate is so high. As it is tax free, the actual earning is close to 11-12 per cent, Jaitley said.