New Delhi, June 20 -- Most banks have revised their fixed deposit interest rates, lowering them further after the Reserve Bank of India (RBI) cut the repo rate to 5.5% in its June monetary policy review. The RBI's Monetary Policy Committee (MPC) reduced the repo rate by 50 basis points on June 6.

The MPC had also announced repo rate cuts in April. Repo rate governs the RBI's lending rate for commercial banks. A lower rate becomes favourable for borrowers but negatively impacts returns on FDs and savings accounts.

Hence, after the recent key lending rate revision by the RBI, banks have further lowered interest rates on FDs. For instance, the country's largest lender, State Bank of India, has reduced its FD rates to 6.25% from the earlier...