Demonetization Effect: Indian Bank cuts deposit rates by 10-100 bps

State-owned Indian bank has cut its deposit rates as it, along with the other banks in the country, continue getting huge pools of deposits following the government's demonetization move to curb black money and disable terror funding. 

On November 8, Prime Minister Narendra Modi announced the decommissioning of Rs 500 and Rs 1,000 notes as a legal tender. Since then, crowds have been lining up outside banks and ATMs to deposit, exchange and withdraw cash.

The centre has set December 30 as the deadline to deposit or exchange all the old notes which has had people scurrying to exchange the now-worthless tender with acceptable bank notes. 

Indian Bank announced the cut in deposit rates on its website. The deposit rates for nearly all the maturities have been cut in the range of 10 basis points to 100 basis points. 

Here are the new rates. 

Maturity period

New rates

Old rates

7-14 days

 4.00%

 4.50%

15-29 days

 4.50% 

 5.00%

30-45 days

 4.50% 

 5.50%

46-90 days

 5.00%

 6.00%

91-120 days 

 6.00%

 6.50%

121-180 days

 6.00%

 6.50%

181 days-less than 9 months

 6.50% 

 7.00%

181 days-less than 9 months

 6.50%

 7.00%

9 months-less than 1 year 

 6.75%

 7.00%

9 months-less than 1 year 

 6.75%

7.00%

1 year

 7.00% 

 7.10%

Above 1 year-less than 2 years

 6.75%

 7.00%

2 years-less than 3 years 

 6.75%

 7.00%

3 years and above

 6.50%

 7.00%