As many as three banks have increased their NRE deposit rates. The banks have done so with an intention to attract more customer to invest with them and hence to increase the flow of foreign funds.

Karnataka Bank has increased its NRE deposit rates across various maturities. The increased rates are applicable on fresh as well as on the renewed deposits. The revised rates are applicable from 19th of December.

The NRE deposit rates of South Indian Bank have been hiked to 6.75% from 3.82% across all the maturity periods. They are also applicable from December 19th.

Lakshmi Vilas Bank has increased its NRE deposits rates for maturity period of one to two years to 10%, for the maturity period of 2-3 years it has been increased to 8% and for deposits beyond 3 years the interest rate is 7%. The rates are applicable from December 22.