A day after the Reserve Bank announced an increase in interest rate ceiling by 50 basis points on non-resident deposits, two public sector lenders have raised FCNR and NRE term deposit rates.
PNB and Dena Bank have increased rates by half a percentage points on non-resident deposit schemes in dollar, British pound, euro and Australian and Canadian dollar across all maturities with immediate effect.
The interest rate on the dollar deposits have been raised to 4.21 per cent for a maturity of 1-2 years from 3.71 per cent. For the maturity of 2-3 years, the rate is revised to 3.52 per cent, against 3.02 per cent, the banks said in separate statements.
For tenure of 3-4 years, the interest rate has been raised to 3.81 per cent from 3.31 per cent and on 4-5 years term deposit the new rate is at 3.95 per cent and the rate for fixed deposit for five years has been pegged at 4.14 per cent.