New Delhi: Interest rates on Foreign Currency Non-Resident (FCNR) bank deposits have been revised by Punjab National Bank (PNB) and Oriental Bank of Commerce (OBC). The revised rates will be effective from December 1 this year. Interest rates on deposits in US dollars having a maturity period of one year to less than two years, have been reduced. These deposits will now attract an interest rate of 3.71 percent as compared to 3.89 percent earlier. Similarly, interest rates on deposits made in British pounds, having a maturity of one year to less than two years have also been reduced. These deposits will now have an interest rate of 5.30 percent against 5.40 percent offered earlier. However, interest rates on deposits made in Euro of one year to less than two years maturity period have been increased. Such deposits will now be available at at an interest rate of 3.94 percent compared to 3.86 percent offered earlier. The revised rates on FCNR bank deposits of PNB and OBC having a maturity period of one year to less than two years are summarized in the table below: | Currency of Deposit | Old Interest rate (%) | New Interest rate (%) | | US Dollar | 3.89 | 3.71 | | British Pound | 5.40 | 5.30 | | Euro | 3.86 | 3.94 | FCNR deposits are a popular way of managing overseas earnings effectively. The deposits have a zero tax liability in India and are fully repatriable. These accounts are maintained in foreign currency and earn attractive interest rates. FCNR deposits can be made in the most popular international currencies including US Dollar, British Pound and Euro. |
