RRBs – Payment of Interest on Savings Bank Account on a Dail

RRBs – Payment of Interest on Savings Bank Account on a Daily Product Basis

RBI/2009-10/169
RPCD.CO.RRB.BC.No. 25 /03.05.33/2009-10

September 24, 2009

The Chairman
All Regional Rural Banks

Dear Sir,

Payment of Interest on Savings Bank Account on a Daily Product Basis

Please refer to para 2(iii) of the directive DBOD.No.Dir.BC.151/C.347-85 dated December 27,1985, in terms of which interest in the case of savings deposits, shall be calculated on the minimum balance to the credit of the deposit account during the period from the 10th to the last day of each calendar month.

2. On a review, it has been decided that the interest on balances in savings bank accounts would be calculated on a daily product basis with effect from April 1, 2010. Regional Rural Banks are advised to work out modalities to effect a smooth transition to the revised procedure.

Yours faithfully

(R.C.Sarangi)
Chief General Manager