On Friday, Oriental Bank of Commerce has increased the deposit rates for short term deposits to 50 base points. This followed after the Reserve Bank of India decided to hike the rates of the key policy.
Effective November 4, the increase in the rates were applicable. For deposits which are going to mature or have a maturity date anywhere between 180 days to a year, the rates have been increased by 50 basis points by the bank. On the other hand, the deposits which have 91-179 day maturity tenure, the interest rates are now increase by 25 basis points, which means that the rate of interest would be 8.75%. The basis point is nothing but one hundredth of the percentage point.