SBI’s new rules on saving accounts and short-term loans effective from May 1

State Bank of India (SBI) has moved to a new interest rate regime on large savings account deposits with balance above Rs 1 lakh as well as short-term loans like overdraft and cash credit. SBI became the first bank in the country which has linked deposit accounts and short term loans to an external benchmark. In March 2019, SBI has announced that it will link its interest rate on large savings account deposits and short term loans to RBI’s repo rate which would be effective from May 1, 2019.