SBI - NewNerve

State Bank of India (SBI), one of India's largest public sector banks, is urging the government to provide a full tax rebate on the interest earned by senior citizens on their deposits. The bank estimates that senior citizens have earned a staggering Rs 2.7 lakh crore in interest, and by assuming an average tax payment of 10%, approximately Rs 27,106 crore could be collected as tax revenue. SBI argues that granting a full tax rebate on these earnings would not impact the government's fiscal deficit and would be a fair measure to support senior citizens. Rising Deposit Rates and Special Schemes: The surge in deposit rates, coupled with higher interest rate differentials for senior citizens, has led to a significant increase in deposit accretion among this demographic. SBI highlights the s...

In a recent report by the State Bank of India (SBI), it has been highlighted that public sector banks (PSBs) in India have experienced a more substantial increase in deposit rates compared to private banks. Additionally, there has been a significant jump in deposits made by senior citizens. This development signifies the growing confidence of both banks and depositors in the Indian banking system. Let's delve deeper into the findings of the report. Deposit Rate Hike for PSBs: The report reveals that PSBs have been successful in raising deposit rates, despite the Reserve Bank of India (RBI) holding the rate since February 2023. The aggressive approach by select banks to attract deposits, coupled with fluctuating liquidity constraints, prompted the banking system to raise the deposit rates...

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SBI Urges Government to Grant Full Tax Exemption on Rs 2.7 Lakh Crore Interest Earned by Senior Citizen Deposits

Report Reveals Higher Deposit Rates for PSBs, Senior Citizens Embrace Banking