Reserve Bank of India has emphasized the payment of interest on savings accounts every 3 months.
Reserve Bank of India has mentioned that by payment of interest in short term duration or every quarter year, savings accounts holders will benefit.
Presently, the interest for the savings account is credited twice a year. The interest ratio on this savings account is calculated on a daily basis from 1st April, 2010.
Reserve Bank of India has sent a circular dated 3rd March to all banks to credit interest on all savings accounts every 3 months.
Public banks pay 4% interest for savings accounts. Some private banks pay up to 6% for Savings accounts.
Crores of savings accounts holders are expected to benefit by this short term interest payment.
Banks are expected to bear the additional burden of interest payment estimated to be around Rs. 500 Crores.
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