Canara Bank revises interest rates on its fixed/term deposits for the second time in a month. With effect from 30 August, the public sector bank, that is scheduled to be merged with Syndicate Bank, will be offering FDs less than Rs 2 crore with interest rates ranging between 5 to 6.50 percent for maturity periods of 7days to 10 years.

Interest rates on deposits with maturity periods of 46 to 269 days and one-year were left unchanged. As for deposits for tenures over 1 year but less than 3 years, the interest rate was cut by 50 basis points.

Note that the interest rates on tenures between 7 and 14 days are only applicable on single deposits of Rs 5 lakh or above. The rates are also applicable to recurring deposits (RD).

Banks are on a rate-cutting spree after increased pressure from the Reserve Bank of India to make the transmission of repo rate cuts into interest rates faster.

On Wednesday, RBI made it mandatory for banks to link loans given to retail customers and micro, small and medium enterprises (MSMEs) to be linked to external interest rate benchmarks, from 1 October, in a big push to make the transmission of monetary policy more effective.