The Reserve Bank of India's move to raise ceiling on NRE rupee deposits have prompted IDBI, Union Bank of India and Yes Bank to increase interest rates on fixed deposits of non-resident Indians.
The three banks raised the interest rates with effect from November 18.
IDBI Bank increased interest rate by 27 basis points on NRE fixed desposits maturing in one or less than two years.
For deposits of two years to less than three years and three years to less than five years, IDBI hiked the interest rates by 25 basis points each to 5.60 per cent and 5.65 per cent, respectively, the bank said in a statement.
Union Bank of India raised interest rates on such deposits by 25 basis points. The new rate for deposits maturing in less than 2 years stand at 5.47 per cent, while that for those maturing in two years to less than three years is 5.60 per cent.
Union Bank now gives 5.65 per cent interest rate for desposits of three years and above, according to a statement released by the bank.
New generation Yes Bank also hiked interest rates on these deposits by 25 basis points.
Yes Bank now gives 5.47 per cent interest rate for NRE fixed deposits maturing in one year to less than two years and 5.65 per cent for two to less than three period deposits.
The NRE fixed deposit rates for more than three years to less than five years period would now draw up to 5.65 per cent interest rate, Yes Bank said in a statement.
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