Mumbai: India’s largest lender State Bank of India (SBI) has cut interest rates on short-term retail term deposits by 100 basis points (bps).

In a stock exchange filing on Tuesday, the bank said it has reduced the rates offered on short-term deposits below 1 crore to 6% from 7% for a maturity period of 7 to 45 days. The new rate will be applicable from 7 October, SBI said in the filing.

On 16 September, the bank had cut interest rates by 25 bps on medium-term deposits. SBI had reduced rates to 8.75% for deposits with maturity of one year to less than three years and to 7.25% for those in the 180-210 days category .

In July, too, it had cuts interest rates on fixed deposits of up to 179 days by 50 bps and on bulk deposits by 25 bps.

On Tuesday, Reserve Bank of India (RBI) announced its monetary policy where it left its repo rate unchanged at 8%.