State-owned Oriental Bank of Commerce (OBC) today raised interest rates by 0.5 percentage points on select term deposits.
The interest rate on term deposit between 3-5 years has been raised to 9.25 per cent from 8.75 per cent, OBC said in a statement.
Decision of deposit rate hike come days after RBI raised the policy rate by 0.25 per cent in its fight to keep inflation under check.
The repo rate or the short term lending rate has been increased by 25 basis points to 7.5 per cent from 7.25 per cent with immediate effect.
The cash reserve ratio (CRR), the portion of deposits that banks are required to maintain with the RBI in cash, unchanged at 4 per cent.
At the same time, the RBI reduced the minimum daily maintenance of CRR from 99 per cent of the requirement to 95 per cent effective from September 21, a move aimed at inducing liquidity into the system.