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Canara Bank Slashes FD Rates Post RBI Repo Cut
17 Dec, 2025
Summary
- Canara Bank lowered RLLR by 0.25%, effective December 12, 2025.
- New FD rates offer a maximum of 6.15% for general citizens.
- MCLR rates remain unchanged following the RBI's repo rate reduction.
Canara Bank has recently adjusted its lending and fixed deposit interest rates in response to the Reserve Bank of India's decision to reduce the repo rate by 25 basis points. The central bank's move brought the repo rate down from 5.50% to 5.25% in early December 2025.
Effective December 12, 2025, Canara Bank reduced its Repo Linked Benchmark Lending Rate (RLLR) by 0.25%, bringing it to 8.00%. This change is expected to benefit borrowers whose loans are linked to RLLR, potentially leading to lower Equated Monthly Installments (EMIs) or a shortened loan tenure, depending on their specific loan agreements.
In parallel, Canara Bank also revised its fixed deposit interest rates for deposits under Rs 3 crore, with these changes effective from December 8, 2025. The highest interest rate offered is now 6.15% for a 555-day tenure for general citizens. Notably, the bank's Marginal Cost of Funds based Lending Rate (MCLR) remains unaffected by these recent policy shifts.
