SBI raised interest rates across all tenors uniformly by 100 bps for deposits over Rs one crore. The revised rates which come into effect from November 30 have been changed after more than a year. Senior citizens earn an additional 50 bps on all tenors.SBI officials say that the decision to revise rates was purely guided by arbitrage considerations. The revised rates are still lower than the benchmark repo rate the key policy rate at which RBI lends to banks is 6%. While the reverse repo rate, the rate at which banks lend to RBI is 5.75%.This gives the bank to deploy the funds in the reverse repo auction and earn an arbitrage.

Source: Economic Times November 29, 2017 16:18 UTC