PNB gives blow to customers, reduces interest rates on savings accounts

Jun 02 2020 01:49 PM
PNB gives blow to customers, reduces interest rates on savings accounts

Punjab National Bank (PNB), India's second-largest government bank, has cut the repo rate linked interest rates. The bank said that it has reduced the RLLR by 0.40 per cent, reducing it from 7.05 per cent to 6.65 percent. The bank has also reduced the marginal cost-based interest rate (MCLR) by 0.15 percent for all maturity periods.

The bank has issued a release saying that it has also cut the interest rate on savings accounts. The bank has reduced the interest rate on savings accounts by 0.50 per cent to 3.25 per cent. The bank said that the new rates will be effective from July 1.

Apart from this, the bank has also reduced its term deposit interest rate for various maturity periods. Now the maximum rate has been reduced to 5.50 percent interest rate only on select maturity period. The reduced rates have come into effect from Monday itself. For senior citizens, the bank is offering 0.75 per cent more than the interest rate applicable on deposits up to 2 crores for all maturity periods. Banks have been continuously reducing interest rates on deposits since the recent reduction in the repo rate by the Reserve Bank of India. Earlier last week, Bank of India and UCO Bank have also reduced interest rates. Bank of India (BOI) has reduced its EBLR to 6.85 percent. UCO Bank has reduced its repo based interest rate to 6.90 percent.

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