Why banks are raising interest rates when RBI isn’t

Synopsis
RBI’s emphasis on systemic stability is forcing banks to focus on mopping more deposits.

For nearly 17 months, the Reserve Bank of India – RBI - hasn’t moved on interest rates. But banks are raising the rates they offer on deposits as well as on lending. This, when the noise is getting louder on the prospects of central banks lowering rates due to easing inflation. The European Central Bank is already at it. The State Bank of India (SBI), Bank of Baroda and Bank of Maharashtra (BoM) have just launched a special drive to raise