RBI Hikes Savings Deposit Rate for Co-op Banks by 50 bps
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/508 · issued 03 May 2011 · ~1 min read
Quick answerRBI raised savings deposit interest rate for State and Central Co-operative Banks from 3.5% to 4.0% per annum, effective May 3, 2011. This applies to domestic, ordinary NRO, and NRE savings accounts. All other deposit rate instructions remain unchanged.
What changed
The savings deposit rate for co-operative banks was increased by 0.5 percentage points, from 3.5% to 4.0% per annum. This covers domestic savings deposits, ordinary Non-Resident savings deposits, and savings deposits under the Non-Resident (External) Accounts Scheme. The change took effect immediately on May 3, 2011.
What it means for you
Co-operative banks must now offer 4.0% on eligible savings deposits, up from 3.5%. This will increase their interest cost on these deposits, potentially compressing net interest margins unless lending rates are adjusted. The hike aligns co-op bank savings rates with the broader banking system and may attract more savings deposits from customers.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update savings deposit interest rates to 4.0% per annum for domestic, ordinary NRO, and NRE accounts immediately.
Communicate the rate change to all branches and ensure system updates are completed.
Review deposit pricing strategy to manage impact on net interest margins.
Acknowledge receipt of this circular to the respective RBI Regional Office.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Customers holding domestic savings accounts, Customers with ordinary Non-Resident savings deposits, Customers under NRE savings accounts
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this rate hike apply to all savings deposits at co-operative banks?
Yes, it applies to domestic savings deposits, ordinary Non-Resident savings deposits, and savings deposits under the NRE Accounts Scheme. Other deposit categories remain unchanged.
When did this new rate become effective?
The new rate of 4.0% per annum became effective immediately from May 3, 2011, the date of the circular.
Are there any other changes to deposit rate instructions?
No. All other instructions on deposit rates issued earlier remain unchanged, as per the circular.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “in partial modification of its directive RPCD.CO.RCB.BC.No.64/07.38.01/2010-11 dated May 3, 2011”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1524: RPCD.CO.RCB.BC.Dir.No.64/07.38.01/2010-11 — "Interest Rates on Deposits" dated May 3, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/508
RPCD.CO.RCB.BC.No.65/ 07.38.01/2010-11
May 3, 2011
All State and Central Co-operative Banks
Dear Sir,
Interest Rates on Deposits
Please refer to our directive RPCD.No.DIR.BC.53/D.1-87/88 dated November 2, 1987, as amended from time to time, on the above subject.
2. It has been decided to increase the interest rate on domestic and ordinary Non-Resident savings deposits as well as savings deposits under Non-Resident (External) Accounts Scheme by 0.5 percentage point from 3.5 per cent to 4.0 per cent per annum with immediate effect.
3. All other instructions issued from time to time in this regard will remain unchanged.
4. An amending Directive RPCD.CO.RCB.BC.Dir.No.64/07.38.01/2010-11 dated May 3, 2011 is enclosed.
5. Please acknowledge receipt of this circular to the Regional Office concerned.
Yours faithfully,
(C.D.Srinivasan)
Chief General Manager
Encl: As above
RPCD.CO.RCB.BC.Dir.No.64/07.38.01/2010-11
May 3, 2011
Interest Rates on Deposits
In exercise of the powers conferred by Section 35 A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) and in partial modification of Directive RPCD No.Dir.BC.53/D.1-87/88 dated November 2, 1987, as amended from time to time, on Interest Rates on Deposits, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that, the rate of interest on domestic and ordinary Non-Resident savings deposits as well as savings deposits under Non-Resident (External) Accounts Scheme shall be 4.0 per cent per annum with immediate effect.
(V.K.Sharma)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/508 · issued 03 May 2011. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6386&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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