The Economic Times

A month after RBIs rate hike, banks start raising deposit rates as liquidity shrinks, Bank of India the latest to move

Domestic banks are beginning to increase their deposit rates due to shrinking liquidity conditions in the market. Bank of India recently announced a rate hike on deposits for various maturities, including a special 500-day option. This decision reflects the growing cost of deposits in the banking system as demand for credit rises. Banking system liquidity has significantly decreased from its peak in early September.