Soon after the Reserve Bank of India (RBI) revised the guidelines for FCNR and NRE deposits, Allahabad Bank today announced revised rates for rupee and foreign currency deposits by non-resident Indians.
An official of Allahabad Bank said the bank has raised the rates on FCNR and NRE deposits in view of the revised RBI guidelines.
He said funds from this source were coming and there was no dip in spite of the global financial meltdown.
Meanwhile, another city-based PSB, UCO Bank, would also follow suit soon.
An official of UCO told PTI that the ALCO of the bank would meet shortly to revise the rates on NRE and FCNR deposits.
To a query, he said NRI remittances had been a source of funds for the banks, but not a major one. "It is a part of the funding source," he said.
The official said funds from this source was coming in and there was no interruption.