Private-sector lender, Bank of Rajasthan (BoR) today slashed interest rates on deposits across various maturities by upto 0.5 per cent effective from January 5.
With this, deposits having a maturity of one year will now carry an interest rate of 9.6 per cent as against 10.10 per cent earlier, the bank said in a press release issued here today.
Similarly, deposits having a tenure of 15-months will attract an interest rate of 10 per cent as against 10.35 per cent earlier. Senior citizens will receive a 0.5 per cent more rate for deposits across all maturities, the bank said.
The rate cut came shortly after Reserve Bank injected around Rs 20,000-crore into the banking system through a 0.5 per cent cut in CRR to 5 per cent and slashed its short term lending and borrowing rates by one per cent each.
Responding to the RBI measures, state-run Union Bank of India had announced an upto 1.35 per cent reduction in its deposits rates yesterday.
Union Bank is expected to cut its benchmark prime lending rate (BPLR) next week.