RBI Deputy Governor K C Chakrabarty said interest rates on saving desposits should be determined by the market.
"If all the other rates are deregulated, then why savings rates should not be deregulated? The only question is when and how," Chakrabarty told reporters on the sidelines of an event near here.
When it was pointed out that there was a difference of opinion among banks on deregulation of savings rates, he said that a decision would be taken on the basis of a consensus by all stakeholders.
Indian Banks' Association (IBA), a group of public and private sector lender, had recently written to the RBI and expressed the view of lenders against freeing up of saving bank interest rate, which is pegged at 4 per cent.
The apex bank had already circulated a discussion paper on deregulation of savings rates.
Asked about whether the RBI was worried over the possible appreciation of the rupee vis-a-vis the dollar in view of the downgrading of the sovereign rating of the US, he merely said, variation of the domestic currency would have to be uniform and without much volatility.
"When the rupee depreciates, the exporters are benefitted," he said.
He said that the high interest rate regime prevailing now was because of high inflation in the economy.
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