Mumbai: Bank of Maharashtra (BoM), has increased its deposits interest rate by up to 125 bps (100bps=1%) with effect from 12.10.2023. The rate increase applies to fixed deposits as well as special schemes introduced by the bank.
Bank of Maharashtra is the second bank to raise deposit rates after the Reserve Bank of India monetary policy committee meeting last week. Although RBI had retained its policy rate, it had said that it would tighten liquidity by selling government bonds through open market operations to keep inflation under check.
The highest increase of 125 bps is in deposit rates for the tenure of 46-90 days where the bank now offers 4.75%. For tenure of 1 Year, the bank offers interest of 6.50% as against 6.35% earlier and for one year to three-year deposits, customers will get 6.25% as against 6% earlier. Senior citizens will be eligible for an additional benefit of 50 bps in interest rate with 7.50% under 200/400 days’ special scheme.
The increase in deposit rates comes at a time when there is liquidity shortfall in the money markets. As a result of the tightness the yields on treasury bills have risen. In Wednesday’s auction the cut-off on the 364-day t-bill rose to 7.15% from 7.03% on August 30th.
