Which Bank has introduced a new interest rate to RBI's Repo Rate?
Options
A. ICICI Bank
B. Indian Bank
C. Axis Bank
D. State Bank of India
Correct Answer
State Bank of India
Explanation
India's largest bank State Bank of India has moved to a new interest rate regime on large savings account deposits as well as short-term loans. Earlier, SBI had announced that it will link its interest rate on savings account with a balance above Rs1 lakh and short-term loans like overdraft and cash credit facility to Reserve Bank of India's repo rate, effective 1 May 2019. The interest rates on large SBI savings account deposits and interest rate on some short-term loans will automatically change as and when RBI changes its repo rate. This will help in better transmission of RBI's policy rates into the banking system.
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