Mumbai, Aug 18: Bank of India has announced on Tuesday that it will change interest rates on very large deposits (above Rs 10 crore)--having maturity of 15 days to 179 days--every day. This is part of the differential interest rates banks are allowed to offer for deposits larger than Rs 15 lakh.Another public sector bank, Bank of Baroda, is also learned to be offering similarly structured daily changing interest rates for large deposits. Reserve Bank of India had allowed banks to offer differential interest rates for deposits of above Rs 15 lakh in the April credit policy.
The daily variation are on the differential rates that are offered over and above the normal rates offered for similar tenure.
According to a Bank of India official, the bank had been offering daily changing interest rates for very large deposits since the last two months. Since the number of such depositors are small the zonal managers of the bank will interact with the depositors on a daily basis to fix the interest rate, said a BoI official.
Bank of India has announced the changed deferential interest rate formulae for deposit size falling below Rs 10 crore and of tenors of more than 180 days. The additional interest rate applicable for deposits of the size of Rs 15 lakh to Rs 10 crore for tenures extending from 15 days to 3 years is one per cent above the normal deposit rates. For deposits of Rs 10 crore and above, but for tenures above 180 days the differential rate is one per cent over and above the normal rates for similar tenure.
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