Hyderabad: The RBI has taken several measures to attract foreign exchange, especially US dollar deposits and prevent the fall of the rupee. As part of this, some special facilities have been provided. Accordingly, many banks have announced to increase in interest rates on Foreign Currency Non-Resident (FCNR) deposits.
Foreign Currency Non-Deposit Resident (FCNR) accounts can be opened to deposit the amount earned abroad in domestic banks. In these, the currency of the respective countries can be deposited directly. The RBI has allowed the interest rates on these deposits to increase to enhance the foreign exchange reserves in the country.
The public sector State Bank of India (SBI) has fixed the annual interest rate on US dollar deposits in FCNR account at 2.85 per cent to 3.25 per cent for various tenures. It has been announced that this increase will be effective from July 10. It has increased from 1.80 per cent to 2.85 per cent on one-year term deposits. While 3.10 per cent interest on three to four years deposits and 3.25 per cent interest on five-year deposits.
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HDFC Bank has increased interest on FCNR USD (US Dollar) deposits to 3.35 per cent for a tenure of one to two years. It has come into effect from July 9. On the occasion, the bank said that they will keep increasing their FCNR deposit rate from time to time.
ICICI Bank has increased the interest rate on deposits above USD 3,50,000 by 0.15 per cent. From July 13, the new interest rate is 3.50 per cent. This rate is applicable for 12-24 months.
Equitas Small Finance Bank has revised the interest rates on fixed deposits and recurring deposits made in Non-resident External (NRE) accounts. Around 7.40 per cent interest on 888 days Fixed Deposit (FD) and 7.30 per cent interest on 36 months Recurring Deposit (RD).
IDFC First Bank has fixed 3.50 per cent interest on FCNR deposits above one million dollars. It is applicable for a period of one to five years. While 2.50% interest on five years deposit.
