Interest Payment on Savings Bank Accounts

Reserve Bank of India by their Notification dated 24th April 2009, has instructed all the Banks to start payment of interest on Savings Bank Accounts on domestic resident accounts and on NRO/NRE Rupee Acccounts on a DAILY Product Basis with effect from 1st April 2010.

Though Indian Banks Association was reluctant to comply with this suggestion earlier, Reserve Bank of India has thought it fit to implement this change in procedure as it feels now that computerisation of Bank Branches will be able to handle this effectively.