The RBI insists on all the state and central cooperative banks making certain that there is minimal variation in interest rates on single term deposits of Rs 15 lakh and above and other deposits for corresponding maturities as there are presently wide variations noticeable in interest rates on them.
In a notification issued to the banks, the RBI has asked them to have a board approved transparent policy on pricing of liabilities.
The apex bank says the cooperative banks offer vastly different rates on deposits with almost no difference in maturities. Doing things in such a way shows that they lack adequate liquidity management system and pricing methodologies, the RBI indicated.
Banks are permitted to give different rates of interest on fixed deposits according to their own judgment but they have to give information to the depositors about the plan of interest rates payable on deposits.