Hyderabad:The RBI has taken several measures to attract foreign exchange, especially US dollar deposits and prevent the fall of the rupee. As part of this, some special facilities have been provided. Accordingly, many banks have announced to increase in interest rates on Foreign Currency Non-Resident (FCNR) deposits.
Foreign Currency Non-Deposit Resident (FCNR) accounts can be opened to deposit the amount earned abroad in domestic banks. In these, the currency of the respective countries can be deposited directly. The RBI has allowed the interest rates on these deposits to increase to enhance the foreign exchange reserves in the country.
The public sector State Bank of India (SBI) has fixed the annual interest rate on US dollar deposits in FCNR account at 2.85 per cent to 3.25 per cent for various tenures. It has been announced that this increase will be effective from July 10. It has increased from 1.80 per cent to 2.85 per cent on one-year term deposits. While 3.10 per cent interest on three to four years deposits and 3.25 per cent interest on five-year deposits.
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