NRI deposit rates increased

India’s biggest state owned lender State Bank of India and other public sector undertakings in the banking business like Union Bank of India and Bank of India have gone in for a revision of interest rates.

The interest rates that have been re-jigged are basically for the non-residents deposits. Leaving only those who have a maturity of less than two years, under these deposits rates have been increased across the board.

All these lenders in separate statements to the press have also conveyed that these revised rates will be applicable from today and have been implied on both Rupee as well as foreign currency deposits.

A non-resident Indian who used to earn 2.79 per cent interest earlier on depositing rupee with the bank for a maturity of 3 years will now be earning 3.09 per cent interest.

In contrast the deposit rate has been cut down by .01 percent to 2.53% if NRIs deposit for a period of 1-2 years.

However if the NRIs invests dollar, they will get 1.78 percent interest return as compared to 1.77 percent. Earlier dollar deposits used to give 2.73 percent for an investment of 5 years which has been increased to 3.22 percent.