Banks to ask RBI to permit interest on current accounts

In the run up to the RBI’s Monetary Policy Review, banks will ask the central bank to allow them to pay interest on current account deposits.

Currently, there is no interest given by banks on current accounts. Banks are of the view that providing interest on current account will generate more cash flow into the system which otherwise stays with the establishments. Current accounts make 9.85 % of total deposits with banks. Banks will also demand a slash in CRR as well as in repo rate.

Month: Current Affairs - January, 2013