SBI, Bank of India slash FD rates after RBI repo cut

Following a cut in the Reserve Bank of India's (RBI) repo rate, both State Bank of India (SBI) and Bank of India have reportedly slashed their fixed deposit (FD) rates. This is a typical response of commercial banks to a reduction in the central bank's benchmark lending rate, as it lowers their cost of funds. Consequently, banks tend to offer lower interest rates on deposits. This move will likely impact savers who rely on fixed deposits for returns, as they will now receive comparatively lower interest on their investments with these major public sector banks. The reduction in FD rates reflects the broader monetary policy transmission mechanism in the banking sector.