Reserve bank of India instructed banks to provide the customers with the interest at a shorter period. Now the customers will het the interest rates on savings accounts, fixed deposits at a time less than 3 months.
As per the earlier guidelines banks were supposed to pay the interest at a time period of 3 months or greater than this. But now the customers can avail the interest rates on savings at term deposits on rupee deposits held in domestic, Ordinary Non-Resident (NRO), Non-Resident Special Rupee (NRSR) and Non-Resident (External) (NRE) at a shorter period of time.
Since the banks are now operational on core banking platform, so RBI decided to rethink, and asked banks to provide customers interest rates on savings and term deposits at a shorter interval. In addition to it RBI also allowed banks to provide interest rate on incremental NRE deposits with the time period of three and above before 31 January, 2013.