One basis point is 0.01 percentage point.
Replying to a question by reporters during the post-monetary policy press conference, Malhotra said deposit rates should reflect real interest rates.
“When inflation is so low and going forward also it’s going to be low…, then even though the nominal interest rates may seem to be low…real interest rates today are quite high. So, that’s true not only for borrowers but also for savers. And so, we do expect that going forward, especially after this repo rate cut, deposit rates will, to some extent, moderate,” Malhotra said.
RBI data showed that the cumulative 125 bps cut in the policy repo rate, since February 2025, has led to a 105 basis point decline in the weighted average domestic term deposit rate (WADTDR). The WADTDR on fresh rupee term deposits of banks stood at 5.57% in October 2025, down from 5.61% in September 2025.
“Transmission has been broad-based across sectors. On the deposit side, the weighted average domestic term deposit rate (WADTDR) on fresh deposits has declined by 105 basis points, while that on outstanding deposits has softened by 32 basis points over the same period,” Malhotra said in his policy statement.
Bankers said deposit rates have already moderated, and the scope for further reduction appears limited.
“Deposit rates have already come down, and from our perspective, we also want to take care of the interests of our depositors. Of course, our asset-liability committee will meet and decide, but the scope for further reduction in deposit rates is limited,” said Ashwini Kumar Tewari, managing director, corporate banking and subsidiaries at State Bank of India.