Banking and monetary regulator, Reserve Bank of India has announced a hike in interest rates of non resident Indians' (NRI) deposit accounts by different spreads.,p>The FCNR deposits have seen a rise by 25 bps while NRE deposit rates have been raised by 100 bps. The revised rates have been brought to immediate effect.
The apex bank has directed in a notification that the NRE deposit rates in case of USD deposits should not supercede the LIBOR/SWAP rates with a spread of 275 bps for a deposit tenor of 1-3 years.
In case of FCNR (B) deposits, the interest rate should not not be in excess of the pervailing LIBOR/SWAP rates in addition to spread of 125 bps for deposits of all tenors.
Floating rate deposits will have interest rate reset period of 6 months, said the apex bank.