Savings A/cs interest will be calculated on daily balances .. April '10 onwards - who gains ?

Yes, definitely the customer will gain. Earlier the calculation was based on the minimum balance between 10th and end of a month. A withdrawal on the last working day of the month will not yield any interest for that month.Now the accrual will be based on daily basis

this is a good move and will be in a the side of the customer...

Now actually the banks exploits the users..this move will end that exploitation by the bank.

I fully agree with Leena if on my deposit of Rs. 10,000 from 12th to 28th date of the  month Bank pays me the interest , as at present this is not the policy

Yes, consumer will get the higher interest. Practically speaking as I think I keep Ten thousand Rs. in saving Bank Account from 12th to 28th of the month I will get the interest for this period, which I am not getting at present. If this policy is not adopted, the consumer will be the looser.,nor the gainer

Customer will gain. It gives us the realistic interest. The earlier method was adopted since in those days, the interest used to be calculated manually and the conditions were set in favour of banks. Now with the computerisation and new policy, customer will get the realistic interst though the benefit will be marginally high.

Customer will gain if and only if

1. the bank(s) implement whole heartedly unlike we see how insurance companies/banks are reluctant to sell pure term insurance plans to customers, even though every insurer have such plans for the name sake regulatory compliance

2. the interest rates are decent ,say 4-5%

3. the directive is followed for long run unlike we have seen in case of unlimited free withdrawals from all bank's ATM has been followed for few days that to with half hearted approach and I have been literally travelling across India and many ATMs even in cities like Mumbai did not implement this on fair manner and smartly programmed ATMs to give messages like "NETOWRK BUSY" etc and I have even seen at a Kotak Mahindra Bank ATM openly sticking a notice by saying that "SBI Debit Cards cannot be allowed to be withdrawn from this ATM" near Yeshwantpur Railway station area in Bangalore

4. the banking top brass does not bend RBI politically like we see whenever any customer friendly directives are initiated

5. the political leaders does not smell any loss to them(I mean as most of them are also money lenders who earn interest on daily basis..If not believable, please visit any subji mandi anywhere in India in the early hours and closing hours!!!)

6. the necessary modifications in current banking software is done in time (most importantly, if not at snail pace)) by all the banks  as and when this directive is implemented or else we may hear smart excuses like "EVERY THING IS DONE BY COMPUTERS AT CORPORATE OFFICE" and so on if anybody demands in this regard.

How many of us know the interest earned by credit card (banks..., sorry companies!!!) in this way is no where canvassed/debated like the way we have been debating here on these customer friendly initiatives

Is it a false act by RBI to check pulse of investors as banks and regulators want to see what investors can tolerate painfully and what not in a vast country like in India?

Is it also a measure to ensure banks get more money from the open market to offset the losses whatever they have incurred in Forex currency scams, Stock market scams, etc ?

Having said the above, if at all these kind of initiatives are taken by some genuinely good financially ethical professional, lots of hearty kudos to them for cleaning our financial system by showing how things can be done differently if not by doing different things!!!

The customer will be now able to receive the interest on what he had in his account on a daily basis, and they can also had have a knowledge on interest they receive. So there's no further more queries arising..

Daily interest on the accumulated amount is a welcome move by RBI, but requires a very systematic approach. There are a few queries to be answered.

1. What will happen to monthly deposits, even for pension holders, compound interest will be affected

2. How are the banks going to decide the minimum interest on daily basis, because this can be like stock broking too

3. How will the the small banks will do the business.

I presume this will lead to hardcore sales and banks will target high net worth individuals. A change is required but with utmost caution.

This is new name for floating interests

I agree with you Leena .it is the accountholder not the banks, it is good.

As day to day calculation will be done cusomer will b benefited,as bank was providing the interest on lowest bal maintained in a/c in a month.

Customers will gain. Banks will also gain as they will have a funds at low interest rates. Banks are not here to lose! If Bank loses, its Customer's loss

Till now, Banks have free of interest portion of funds which is withdrawn after 10th of of each month. So now its Customer's gain. In turn, now banks will have short-term liquid funds @ low interest rates

So, good for both Customers and Banks

The customers, i.e. the a/c holders will gain. So far they were not getting incentives ( interest ) for depositing money after 10 th of every month. And withdrawals were being penalised too during 10th to last day of the month .. !!

Banks, however, have urged RBI to reduce Saving Bank interest rate for their lossess.