By adopting a transparent and competitive system for fixed deposits, the Brihanmumbai Municipal Corporation (BMC) is set to earn Rs 1000 crore more in interest compared to the last financial year. Traditionally, BMC would call bank officials to request interest rate quotes, which were then submitted via email or letter. However, since July 2024, the civic body’s finance department has introduced an online system.

Explaining how it works, a senior official said, “In the new system, we raise our demand in the morning, and banks can submit their interest rate quotes until 3 pm the same day. Each bank can see its competitors' quotes and revise their rates, creating a competitive environment.” While the deadline is set at 3 pm, banks sometimes request additional time. “If a bank requests an extension, we grant them an extra hour. A higher interest rate benefits BMC, so we accommodate banks, provided they update their quotes online,” the official added.