Despite earlier policy easing, rising bond yields, currency swings and global uncertainty may push the RBI to maintain a status quo this time.Why RBI may keep the repo rate unchangedThe SBI report said several macroeconomic pressures are limiting the scope for fresh rate cuts. Government bond yields have remained firm in recent weeks, even after previous policy easing, suggesting that the impact of earlier measures is still playing out.It added that the effectiveness of Open Market Operations (OMOs) could ...

Core Insights - Slice Small Finance Bank offers a competitive interest rate of 5.5% on savings accounts for deposits below ₹1 lakh, which is the highest among banks and small finance banks in India [1][11] - The Reserve Bank of India (RBI) repo rate is currently at 5.5%, and Slice Small Finance Bank claims to offer savings account interest rates at 100% off this rate [2][12] - The bank's ability to maintain this interest rate is attributed to its low operating costs through technology and efficient lending practices [4][12] Interest Rate Comparison - The interest rates offered by Slice Small Finance Bank (5.5%) significantly exceed those of other banks, which typically offer rates between 2.5% and 3% for deposits up to ₹1 lakh [11] - For balances above ₹1 lakh, other banks may offer interest rates up to 8%, indicating that Slice Small Finance Bank does not maintain the highest rates for larger deposits [5][12] Impact of RBI Repo Rate - The RBI repo rate influences overall interest rates on bank deposits; a reduction in the repo rate generally leads to lower interest rates on savings accounts due to competitive pressures among banks [8][12] - The current RBI repo rate has remained unchanged during the September-October Monetary Policy Committee meeting, which may stabilize interest rates in the near term [2][12] Digital Banking Features - Slice Small Finance Bank, previously known as North East Small Finance Bank, emphasizes a fully digital banking experience, allowing customers to open and manage savings accounts through a mobile app [9][10][12]

Group 1: Monetary Policy and Interest Rates - The Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.5% during its October 1, 2025 Monetary Policy Committee meeting, following a total reduction of 100 basis points (bps) this year [1][11] - Banks and small finance banks may still lower interest rates on fixed deposits (FDs) as the transition from previous repo rate cuts is ongoing [1][11] Group 2: Fixed Deposit Rates for Senior Citizens - Utkarsh Small Finance Bank is offering an 8.15% interest rate on its three-year FD for senior citizens [11] - Slice Small Finance Bank provides a 7.75% interest rate on FDs with a tenure of 18 months and 1 day to 3 years for senior citizens [11] - Jana Small Finance Bank offers an 8% interest rate on its 2-3 year FDs for senior citizens [11] - Shivalik Small Finance Bank is providing a 7.50% interest rate on its three-year FD tenure for senior citizens [11] Group 3: Fixed Deposit Rates Across Different Banks - The highest FD rates among small finance banks include 8.4% from Suryoday Small Finance Bank for a 5-year tenure and 8.1% from ESAF Small Finance Bank for a 444-day tenure [7][8] - Private sector banks offer varying FD rates, with Axis Bank at 7.10%, Bandhan Bank at 7.50%, and YES Bank at 7.75% for a 3-year tenure [9] - Public sector banks have FD rates ranging from 6.50% at Punjab & Sind Bank to 7.10% at Union Bank of India for a 3-year tenure [10][11]

Core Insights - Federal Reserve liquidity facilities experienced lower than expected interest from Wall Street as the third quarter ended, despite a rise in repo rates indicating liquidity pressure [1][4][6] Group 1: Market Conditions - Quarter ends typically present challenging money market conditions, with firms reducing market participation and liquidity management becoming difficult due to volatile interest rates [2] - This quarter end was anticipated to be particularly turbulent due to declining overall liquidity levels as the Fed continues its quantitative tightening (QT) process [2][4] Group 2: Repo Rates and Liquidity - Repo rates spiked, with the general collateral rate opening at 4.45%, reaching a high of 4.60%, and closing at 4.35% [4] - Concerns arose regarding a potential repeat of the 2019 liquidity shortage that led to a spike in short-term borrowing rates, prompting Fed intervention [3][5] Group 3: Federal Reserve's Strategy - The Fed's QT aims to reduce excess liquidity injected during the COVID pandemic, but with reverse repo usage at negligible levels, QT is diminishing underlying liquidity, increasing market friction risks [4][5] - Market participants had initially estimated that the Standing Repo Facility (SRF) could see up to $50 billion in usage, but actual borrowing was only $11 billion, indicating less extreme conditions than expected [6] Group 4: SRF Functionality and Concerns - The SRF is designed to act as a buffer for temporary liquidity shortfalls, but doubts persist about its effectiveness, as firms may hesitate to use it for fear of signaling financial trouble [6][7]