In an early move, State bank of India (SBI) has announced benchmarking of its savings deposit above | 1 lakh and short-term loans with repo rate from May 1, 2019 for better transmission of policy rate in line with RBI policy. As per the announcement, saving deposits above | 1 lakh will attract interest of 2.75% below repo rate of 6.25% (i.e. 3.5%) and cash credit above | 1 lakh will be priced at repo rate plus 2.25% (i.e. 8.5%) plus spread as per creditor risk. However, other floating loans will be linked to current MCLR regime that will get indirectly priced as MCLR will be reset with a change in savings rate....