SBI extends overdraft facility against FD to online customers

State Bank of India (SBI), the country's largest lender, has extended overdraft facility against fixed deposit to its internet banking.

Only customers at its branches could avail of this facility so far.

''We have launched an online facility for overdraft against fixed deposit. This will help them to use the facility at their own convenience,'' bank's chief general manager (personal banking) Anuradha Rao said.

Online customers holding fixed deposits in a single name can now avail overdrafts of up to 90 per cent of the fixed deposit amount, without having to visit the branch. The overdraft will be generated instantly.

SBI will initially charge an interest rate of 0.5 per cent above the fixed deposit rate for its online customers.

SBI has simultaneously reduced the interest rate on overdraft facility to 0.5 per cent from 1 per cent for branch customers as well, but for a brief period, Ms Rao said.

The bank has 21.5 million customers using internet banking and total number of fixed deposit now stand at 48.3 million.

SBI is also planning to extend the overdraft facility against fixed deposit on the mobile platform as well.