In a first-of-its kind, State Bank of India announced linking of its savings deposits rates and short-term loans to the RBI’s repo rate.

The new rates, linked to the external benchmark rate, would be effective May 1.

The new regime would be applicable only for those with a balance of over Rs 1 lakh in their accounts.

The move would help speed up the monetary transmission process wherein lenders pass on RBI’s rate cuts as well as hikes to borrowers.