INSUBCONTINENT EXCLUSIVE:
short term loans to the repo rate of the RBI.According to the lending major, the step is in order to address the concern of rigidities in
the balance sheet structure and for quick transmission of changes in RBI's policy rates.The linking will be done from May 1, 2019."The
major steps taken in this direction are linking of savings bank deposits, with balances above Rs 1 lakh to repo rate with current effective
rate being 3.50 per cent p.a (2.75 per cent below current repo rate of 6.25 per cent)," the bank said in a statement."All cash credit
accounts and overdrafts with limits above Rs 1 lakh also to be linked to the repo rate (current repo rate 6.25 per cent plus a spread of
The risk premiums over and above this floor rate of 8.50 per cent would be based on the risk profile of the borrower, as is the current
practice.""In order to insulate the small deposit holders and small borrowers from the movement of external benchmarks, SBI has decided to
exempt Savings Bank account holders with balances up to Rs 1 lakh and borrowers with CC or OD limits up to Rs 1 lakh from linkage to the
