Country's largest lender State Bank of India on Tuesday said it has extended overdraft facility against fixed deposit for its internet banking users.
So far, the facility was available for customers at branches only.
"We have launched an online facility for overdraft against fixed deposit. This will help them to use the facility at their own convenience," bank's Chief General Manager (personal banking) Anuradha Rao said.
Customers holding fixed deposits in a single name can now avail up to 90 per cent of the fixed deposit amount as an overdraft to meet emergency and other needs.
The overdraft will be created instantly without the need to visit the branch.
As an introductory offer, SBI is charging an interest rate of only 0.5 per cent more than the linked fixed deposit for its online customers.
The lender has also reduced the interest rate on overdraft facility to 0.5 per cent from 1 per cent for a brief period for customers availing the facility at branches, Rao said.
The bank has 2.15 crore customers using internet banking and total number of fixed deposit are 4.83 crore.
It is also planning to extend the overdraft facility against fixed deposit on mobile.