<h1>RBI Deregulation: Banks Set Own Term Deposit Rates; Senior Citizens Benefit; SBI Rate Steady Since 2014.</h1> The Reserve Bank of India deregulated interest rates on term deposits in 1997, allowing banks to set their own rates with board approval. Banks can offer higher rates for senior citizens' fixed deposits, but this does not apply to non-resident deposits. Following a policy rate reduction in early 2015, 14 out of 27 Public Sector Banks reduced their median term deposit rates by 0.07% to 0.75%. The State Bank of India reduced its median rate from 7.50% in August 2014 to 7.25% in September 2014, maintaining this rate thereafter. This information was provided by a government official in a parliamentary session.