Savers may gain immediately from Raghuram Rajan's monetary policy

 If at all there is one segment that gains immediately from governor Raghuram Rajan's monetary policy, it will be savers. A deposit war among banks is likely as the Reserve Bank of India frees up the interest rate payment option to depositors at less than a quarterly interval, which will allow banks to woo depositors with a little extra payment, even without raising interest rates. This comes above the key interest rate increase, which could raise the return on bank deposits. The option may put marginal pressure on banks, which have already been facing strains on their interest rate margins as they are compelled to pay high rates to depositors while the government has directed them to lower lending rates.

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