The Reserve Bank of India has called a meeting of senior bankers on February 15 to push the banking system into introducing floating rate deposits. The other item on the agenda is speeding up credit delivery. RBI Deputy Governors G Muniappan and Vepa Kamesam have called the meeting of commercial bank chiefs to discuss these issues.
Even though the RBI has been insisting on introduction of floating rate deposits, banks are finding it difficult to sell this product to customers. In such schemes, interest rates on deposits are reset every quarter or six months.
Less than 5 per cent of bank deposits offer floating rates while an increasing number of assets are being linked to floating rates.