Earlier, in September, the bank lowered the base rate by 5 basis points, to 7.45 percent.
The Reserve Bank of India sets the minimum rate of interest, which all banks use as their standard rate. Banks are not allowed to lend at a rate lower than the central bank’s predetermined base rate.
SBI also hiked the interest of fixed deposits above Rs 2 crore, with effect from December 15, 2021.
The revised interest rates will apply to new deposits as well as renewals of maturing deposits. NRO term deposit interest rates will be matched with domestic term deposit interest rates. These interest rates will also apply to domestic term deposits held by cooperative banks, according to SBI website.
The interest rates of FDs below Rs 2 crore have been kept unchanged by SBI.
Here is a look at the other lending rates of SBI as per its website.
External Benchmark based Lending Rate (EBLR)
According to SBI, External Benchmark based Lending Rate (EBLR) = External Benchmark Rate (EBR) + Credit Risk Premium (CRP):
EBR (w.e.f 01-10-2021) is 6.65%; EBLR = 6.65% + CRP
RLLR(w.ef 01.10.2021) would be 6.25.
MCLR
On December 8, 2021, the RBI announced its decision to maintain status quo on rates. The repo rate and reverse repo rate are currently at 4% and 3.35 percent, respectively. The RBI has kept key interest rates unchanged for the ninth consecutive monetary policy review meeting. The current repo rate of 4% is the lowest since April of 2001.
