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With this, deposits having a maturity of one year will now carry an interest rate of 9.6 per cent against 10.10 per cent earlier, the bank said in a press release issued in Mumbai on Saturday.
Similarly, deposits having a tenure of 15 months will attract an interest rate of 10 per cent as against 10.35 per cent earlier. Senior citizens will receive a 0.5 per cent more rate for deposits across all maturities, the bank said.
The rate cut came shortly after Reserve Bank injected around Rs 20,000 crore into the banking system through a 0.5 percentage point cut in CRR to 5 per cent and slashed its short term lending and borrowing rates by one percentage point each to 5.5 and 4, respectively.
Responding to the RBI measures, state-run Union Bank of India had announced an up to 1.35 per cent reduction in its deposits rates on Friday. Union Bank is expected to cut its benchmark prime lending rate (BPLR) next week.
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