https://www.taxtmi.com/article/detailed?id=750 RBI guidance directs banks to compute savings account interest on a daily balance basis instead of on the minimum balance between the 11th and month end, eliminating the extended non performing period while retaining the same nominal rate and semiannual crediting. Banks must adjust IT systems to calculate daily products for each day's balance; this change will increase interest accrued to depositors and incentivise higher average savings balances, offsetting higher payout costs. The article also criticises prior minimum balance methodology and MQAB penalty practices as unjustified. en-us Fri, 09 Apr 2010 00:00:00 +0530 Fri, 09 Apr 2010 22:42:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=750 RBI guidance directs banks to compute savings account interest on a daily balance basis instead of on the minimum balance between the 11th and month end, eliminating the extended non performing period while retaining the same nominal rate and semiannual crediting. Banks must adjust IT systems to calculate daily products for each day's balance; this change will increase interest accrued to depositors and incentivise higher average savings balances, offsetting higher payout costs. The article also criticises prior minimum balance methodology and MQAB penalty practices as unjustified. Articles Other Topics Fri, 09 Apr 2010 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=750