Boost for borrowers

Allahabad Bank has reduced its marginal cost of lending rate (MCLR) by 5 basis points across all tenors from December 1. The MCLR for a one-year tenor will now reduce by 5 basis points to 8.25 per cent.

Further, the bank has also reduced the base rate and benchmark prime lending rate (BPLR) by 10 basis points to 9.6 per cent and 13.85 per cent, respectively. These moves could result in lower borrowing costs for customers.

The sharp fall in deposit rates seen in the last one-two years could end soon, going by State Bank of India’s (SBI) move to raise the interest rate on bulk deposits by 100 basis points effective November 30. The increase in interest rate is across all maturities for bulk deposits higher than ₹1 crore.

The interest rate on the shortest tenor deposit (seven days-45 days) has been raised to 4.75 per cent from 3.75 per cent and for the longest tenor (five-10 years) to 5.25 per cent from 4.25 per cent. Senior citizens now earn an additional 50 basis points. Interest rates on deposits below ₹1 crore remain unchanged for now.

New Paytm Payments Bank

India’s mobile-first bank — Paytm Payments Bank — was launched recently. Customers opening accounts with the bank will get free RuPay virtual debit cards which can be used in any ATM. The customer is not required to maintain a minimum balance in the account and will get an interest of 4 per cent on the savings account. Electronic transactions like NEFT, IMPS, RTGS and UPI will be free of cost.

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