UCBs – Payment of Interest on Savings Bank Account on Daily Product Basis from 01.04.2010

RBI/2009-10/339,
UBD (PCB) BPD.Cir.No. 48/13.01.000 / 2009-10

Dated: March 4, 2010

Payment of Interest on Savings Bank Account on Daily Product Basis

Please refer to our circular UBD (PCB) BPD.Cir.No. 7/13.01.000/2009-10 dated September 1, 2009 advising banks to put in place requisite infrastructure so that transition to the revised procedure of calculating interest on balances in savings bank accounts on a daily product basis could be implemented smoothly.

2.  We advise that payment of interest on savings bank accounts may be made by banks on a daily product basis with effect from April 1, 2010.

Yours faithfully,

(A.K. Khound)
Chief General Manager-in-Charge