RBI suggests Fin Min to align small savings rate

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New Delhi: The RBI has asked the Finance ministry to align their interest rates with market rates which govern the banks also in a bid to improve transmission.

“The ministry has been internally sounded out and communicated by RBI also on small savings rate alignment requirements for better transmission, RBI has told the government the banks’ response in this regard also. It will be a call by the government,” said sources.

Recently SBI chairman Rajnish Kumar said banks cannot go beyond a threshold to cut deposit rates which are linked to the lending rates.

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