Two government owned banks, Union Bank of India (UBI) and Oriental Bank of Commerce have adjusted their interest rates on fixed deposits for foreign currency non-deposit accounts. The rates have been modified for deposits of 1 to 5 years maturity and the new rates have come into effect from October 1, 2012.

UBI issued a statement for the same, which said that it had cut interest rates by 4 basis points up to 12 basis points on deposits having maturity periods ranging from 1 to 5 years for dollar denominated accounts. In addition to this, the rates for euro, pound, Australian and Canadian dollars denominated accounts have also been revised.

It is reported that this is the second time that the bank has modified its interest rates on FCNR deposits since September.

Along with UBI, Oriental Bank of Commerce (OBC) has also announced revision in its FCNR deposits rates, for deposits of maturities 1 to 5 years. The bank has adjusted its interest rates by 1 to 12 bps for dollar denominated accounts.