SAVING ACCTS INTEREST RATE DEREGUALTED in India

As per the the latest monetary policy of October' 2011:

The RBI will deregulate savings bank interest rates with immediate effect. Savings bank account rate will be linked with the policy rate at which the central bank lends short-term funds to commercial banks. Accordingly, each bank will offer uniform rate on savings bank upto Rs 1 lakh. Banks may provide differential rates on savings bank over Rs 1 lakh.

Repo rates hike by 25bps to 8.50 pc. Reverse Repo changed to 7.50 pc.

Bank Rate and CRR unchanged @ 6 pc