The banking sector demonstrates a new direction through Bank of India and State Bank of India (SBI) withdrawing their FD scheme announcements regarding interest rates and liquidity management. Bank of India terminated its special 400-day fixed deposit plan which provided maximum returns of 7.30%. The new FD interest rate structure at Bank of India starts on April 15, 2025, as the institution implements its complete FD rate revision.
SBI ended its Amrit Kalash fixed deposit scheme but did not provide exact interest rate information. The elimination of these high-interest deposit options represents banking institutions changing their strategies because of RBI’s accommodative policy and liquidity control measures.
Punjab National Bank together with Shivalik Small Finance Bank and Kotak Mahindra Bank and Canara Bank have implemented changes to their fixed deposit interest rates. Shivalik Bank lowered its peak interest rates to 8.30% for regular customers and 8.80% for seniors while PNB now provides up to 7.10% interest for a 390-day deposit period.
The rate adjustments combined with FD scheme withdrawals at multiple banks will reduce the number of available high-yield options for customers. The market trends push financial institutions to adjust their product offerings based on economic indicators.
