YES Bank has been a strong proponent of deregulation of savings rate for over a year. The Reserve Bank of India's move will be a game changer for YES Bank, the banking industry and, most definitely, the savers. With the current high interest rate environment, a client is earning negative returns on his/her balance in the savings account. Also, regulated savings rate has led to what is best described as 'lazy banking' in the country.

Deregulation will not only lead to better and more realistic market-based returns for the customer, but also encourage financial inclusion and higher savings. The move will prompt the banks to focus on innovation in product development and service excellence.

Have you witnessed a surge in bank accounts or consolidation due to this move?

It has just been six weeks since the RBI deregulated the savings rate, but we have already seen a significant increase in the number of enquiries and a three-fold rise in the opening of savings accounts.

Most salaried people are asked by their employers to open accounts in a particular bank. How many of them have the option to shift banks? While advertisements are mostly focused on retail customers, isn't this move actually aimed at bigger contributors?

On the contrary, YES Bank's salary account proposition does not differentiate on the basis of deposit slabs. It provides equal opportunity to all customers by offering a uniform 6% savings interest rate, irrespective of the balance. We have seen strong interest from our corporate clients, who are encouraging their employees to shift their salary accounts to our bank. The higher returns are being positioned by corporates as an employee welfare initiative within their organisations. Some working executives are also encouraging their parents to open their accounts with us.

Are you expecting a rate war to be triggered in the coming months or is it over?

Only 3-4 banks have altered their savings accounts interest rates after deregulation. Media reports suggest that the public sector banks and large private banks have decided not to raise the rates for now. However, I believe that all customer-centric banks will take the positive step of realigning their rates in consonance with the higher interest rate environment.

Have you seen a shift in the profile of the people taking loans these days? Which segment is still strong and which one has seen a decline?

At YES Bank, we have noticed that the economically weaker sections in the urban/semi-urban areas have been the most affected by inflation, rate hikes, etc. These are the people who have stayed away from taking personal loans, vehicle loans, etc. The upper and middle levels of the urban middle class are still making enquiries for loans. However, the demand is noticeably less because of the economic uncertainties. We have recently launched car loan, home loans and personal loans and have received a satisfactory initial response from our customers, despite the current market conditions.