The interest rate offered on saving bank account in India is decided by:

Correct option is D

The correct answer is (d) The respective bank.

• In India, the interest rate on savings bank accounts is decided by the respective bank.
• This is in line with the deregulation of savings account interest rates introduced by the Reserve Bank of India (RBI) in October 2011, which allowed banks to set their own rates for savings deposits.

Key Points:

• RBI's Role: The RBI only provides regulatory oversight but does not dictate savings account interest rates.
• Banks' Freedom: Banks can independently set interest rates, but they must apply a uniform rate to all depositors within a particular category.
• Current Scenario: Savings account interest rates vary among banks based on their business strategies and market competition.