SBI to decide on interest rate revision this week after central bank cut

State Bank of India (SBI), the country's largest bank, said its asset liability committee (Alco) will meet this week to decide on revising interest rates after the Reserve Bank of India (RBI) on Thursday slashed the repo rate by 25 basis points to 5.75 per cent.

“The rate cut by RBI is on expected lines. The market was expecting a rate cut, so that has happened. For the bank, we are having a meeting of Alco this week. They will take a decision on what needs to be done (on revision of interest rates),” said PK Gupta, managing director (retail & digital banking) of SBI, in Bhubaneswar.

The RBI also scrapped charges on fund transfers through RTGS and NEFT routes to boost digital transactions and asked banks to pass on the benefits to customers.

The Real Time Gross Settlement System (RTGS) is meant for large-value instantaneous fund transfers while the National Electronic Funds Transfer (NEFT) system is used for fund transfers up to Rs two lakh.

According to a PTI report, SBI charges between Re 1 and Rs 5 for transactions through NEFT and between Rs 5 and Rs 50 for RTGS route.
 

“In line with what RBI has announced we will also be revising our (NEFT and RTGS) charges”, he added.