New Delhi: The country's largest government bank State Bank of India (SBI) has given a big gift to customers. SBI has announced a cut in the Marginal Cost of Lending Rate (MCLR) for the ninth consecutive fiscal year 2019-20. But with this, the interest on FD has also been cut. SBI has cut MCLR by five bps.

After this the rate has come down from 7.90 percent to 7.85 percent annually. The new rates will come into effect from 10 February 2020. This will benefit the customers as they will now be able to get home loans and auto loans cheaply. It is noteworthy that on Thursday, the Reserve Bank of India (RBI) announced no change in the repo rate. The repo rate remains at 5.15 per cent. But even then SBI has cut MCLR.

The central bank On Thursday announced this to boost loans. RBI has given concession to banks to cut the cash reserve ratio (CRR), which will remain in force till July 2020. It was said in this meeting that more and more loans should be provided to small and medium industries. For this, banks can reduce the proportion of their reserves if required.

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