Kotak Mahindra Bank Raises Fixed Deposit Rates By Up To 0.35%

Kotak Mahindra Bank Limited (Kotak) on Thursday announced an increase in interest rates on fixed deposit across multiple tenor baskets for its retail customers by up to 0.35 per cent.

Kotak Mahindra Bank Limited (Kotak) on Thursday announced an increase in interest rates on fixed deposit across multiple tenor baskets for its retail customers by up to 0.35 per cent.

The increase in FD (Fixed Deposit) rates comes after the Reserve Bank of India announced a 40 basis points hike in the repo rate, Kotak said in a release.

Reserve Bank of India (RBI) in a surprise, out of turn move, on Wednesday hiked the benchmark repo rate -- at which it lends short term money to banks -- by 0.40 per cent to 4.40 per cent in order to contain inflation in the wake of the rising global commodities prices fuelled by the Russia-Ukraine war.

"The increase is effective from 6th May on all deposits below Rs 2 crore," the private sector lender said.