 "PNB raises NRI deposits rates by 1%")
Punjab National Bank (PNB) on Friday raised interest rates on NRI deposits of over three years by one per cent, days after the Reserve Bank of India deregulated rates on such deposits. The increase will be applicable on Foreign Currency Non-Resident Bank by NRIs in dollars, pounds, euro, Japanese yen, Canadian dollar and Australian dollar.
These will be applicable from the close of the business on August 14, PNB said. Fixed deposits between three to four years in the dollar will attract 4.78 per cent, as compared to 3.78 per cent. Similarly, four to five years term deposit would earn 5.17 per cent against 4.17 per cent, it said.
For a five-year term deposit the new interest rate would be 5.56 per cent as against 4.56 per cent, it added. A similar one per cent hike has been made in case of term deposits in other currencies like pounds, euro, yen, Canadian dollar and Australian dollar.
These instructions are valid up to November 30, 2013, subject to review. Besides, banks were also advised incremental FCNR (B) deposits as also NRE deposits with reference base date of July 26, 2013, and having maturity of three years and above, mobilised by banks will be exempt from maintenance of CRR and SLR.
Cash Reserve Ratio (CRR) is the portion of total deposits of banks to be kept with RBI while Statutory Liquidity Ratio (SLR) is the portion of total deposit invested in government securities. Currently, CRR requirement is 4 per cent and SLR is at 23 per cent.
These will be applicable from the close of the business on August 14, PNB said. Fixed deposits between three to four years in the dollar will attract 4.78 per cent, as compared to 3.78 per cent. Similarly, four to five years term deposit would earn 5.17 per cent against 4.17 per cent, it said.
For a five-year term deposit the new interest rate would be 5.56 per cent as against 4.56 per cent, it added. A similar one per cent hike has been made in case of term deposits in other currencies like pounds, euro, yen, Canadian dollar and Australian dollar.
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Earlier this week, the Reserve Bank deregulated interest rates on NRI fixed deposit schemes and exempted such term deposits from CRR and SLR requirement to attract foreign currency.
These instructions are valid up to November 30, 2013, subject to review. Besides, banks were also advised incremental FCNR (B) deposits as also NRE deposits with reference base date of July 26, 2013, and having maturity of three years and above, mobilised by banks will be exempt from maintenance of CRR and SLR.
Cash Reserve Ratio (CRR) is the portion of total deposits of banks to be kept with RBI while Statutory Liquidity Ratio (SLR) is the portion of total deposit invested in government securities. Currently, CRR requirement is 4 per cent and SLR is at 23 per cent.