ICICI Bank and Indian Overseas Bank (IOB), on Wednesday, have hiked their interest rates on foreign currency deposits by non-residents by up to 175 basis points.

The hike in the Foreign Currency Non-Resident (FCNR-B) deposits, applicable from May 8, is across currencies in different maturities ranging from one year to five years, ICICI Bank said in a statement here.

The move comes within a week of Reserve Bank of India hiking interest rate caps on foreign currency deposits by the diaspora in its quest to check the rupee slide.

Under the revised rules, banks can offer interest rates, which would be 3 per cent above the international benchmark for deposits in the three-to-five-year maturities from the earlier 1.25 per cent.

The cap has been kept at 2 per cent above international benchmark for deposits of less than three years.

ICICI Bank said in the under three years maturity, it has hiked rates by 0.75 percentage points while for the three-five years category, the hike is 1.75 percentage points.

Under its newly-announced rates, a five-year U.S. dollar deposit will earn a non-resident an interest of 4.11 per cent, while the same for over one year but under two years is 3.05 per cent.

IOB for its part, has increased interest rates in foreign currency non-resident (Banking) accounts by 175 basis points for deposits of three-to-five years.

For deposits between one year and up to three years, it has been increased by 75 basis points with immediate effect, an IOB release said here.

The present interest rates for U.S. dollar ranges from 2.56 per cent to 4.11 per cent, for GBP (Great Britain Pound) 3.38 per cent to 4.70 per cent and for the euro it ranges from 2.95 per cent to 4.45 per cent for different maturities.

IOB had already hiked the non-resident (External) deposit interest rates at 9.25 per cent for deposits ranging from one year but less than five years, the release said.

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