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100 _aJha,Arvind Kumar Das, Satadru and Kashyap, Yuvraj
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245 _aRigidity in small savings rates : Implications for monetary policy transmission
260 _aEconomic & Political Weekly
300 _a60(51), Dec 20, 2025: p.20-24
520 _aA delay in revising small savings deposit rates widens the spread between them and banks’ term deposit rates of comparable maturities, potentially including a substitution from bank deposits to small savings. Empirical estimates indicate that a 100-basis-point increase in this spread raises the share of small savings in total fresh term deposits—that is, the sum of bank term deposits and small savings deposits—by about 1.2 percentage points. This substitution effect contributes to sluggish transmission to banks’ deposit rates, particularly during easing cycles, thereby impeding the monetary policy transmission.- Reproduced https://www.epw.in/journal/2025/51/commentary/rigidity-small-savings-rates.html
773 _aEconomic & Political Weekly
942 _cAR