RBI to look into deregulation of savings' interest rate

The Reserve Bank on Wednesday it will soon set up a working group to examine the possibility of deregulation of interest rates on savings account.

"Deregulation of interest rate is on our radar. A working group will soon be set up to examine the possibility of deregulating of interest rates," RBI Deputy Governor Usha Thorat said while addressing a banking conference organised by FICCI and IBA in Mumbai.

"We have to examine whether the de-regulation can help bring more people into the formal banking system," Thorat said.

At 3.5 per cent per annum, interest on savings accounts is the only regulated rate in the banking system currently and a highly contentious one given its impact on the common man.