Reserve Bank of India: RBI announces various measures related to foreign exchange

New Delhi: The RBI has taken several measures to attract foreign currency deposits, especially US dollar deposits, and to check the depreciation of the rupee. Under this some special facilities have been given. Accordingly, several banks have announced hike in interest rates on foreign currency non-resident deposits. Foreign Currency Non-Deposit Resident (FCNR) accounts can be […]
 


Reserve Bank of India: RBI announces various measures related to foreign exchange

New Delhi: The RBI has taken several measures to attract foreign currency deposits, especially US dollar deposits, and to check the depreciation of the rupee. Under this some special facilities have been given. Accordingly, several banks have announced hike in interest rates on foreign currency non-resident deposits.

Foreign Currency Non-Deposit Resident (FCNR) accounts can be opened to deposit money earned abroad with domestic banks. In this, the currency of the respective countries can be deposited directly. RBI has allowed hike in interest rates on these deposits to increase the foreign exchange reserves of the country. State Bank of India has fixed an annual interest rate of 2.85 per cent to 3.25 per cent on US dollar deposits in FCNR accounts for various tenors. It has been announced that this increase will be effective from July 10. It has been reduced from 1.80 per cent to 2.85 per cent on one-year fixed deposits. Whereas 3.10 percent interest on deposits of 3 to 4 years and 3.25 percent interest on deposits of 5 years.

HDFC Bank has increased the interest on FCNR USD deposits to 3.35 per cent for one to two years. Its implementation has started from July 9. Speaking on the occasion, the bank said that it will continue to increase its FCNR deposit rate from time to time. ICICI Bank has increased the interest rate by 0.15 per cent on deposits above USD 3,50,000. From July 13, the new interest rate is 3.50 percent. This rate is applicable for 12-24 months. Equitas Small Finance Bank has revised interest rates on fixed deposits and recurring deposits in Non-Resident External (NRE) accounts. 888 days fixed deposit (FD) at approx 7.40 per cent interest and 36 months recurring deposit (RD) at 7.30 per cent interest.