Indian Bank has announced a reduction in interest rates on FCNR (B) (foreign currency non-resident) term deposits with effect from October 1. For deposits, in US dollar, the interest rate has been fixed at 2.97 per cent for one year and above but less than two years against the existing rate of 3.03 per cent. For deposits of two years and above but less than 3 years the rate will be at 2.38 per cent (2.42 per cent); for deposits of three years and above but less than 4 years 3.45 per cent (3.50 per cent); for deposits of four years and above but less than 5 years 3.58 per cent (3.66 per cent) and for deposits of five years only 3.75 per cent (3.87 per cent).
Punjab National Bank , Union Bank of India Oriental Bank of Commerce have revised their deposit rates on FCNR accounts with maturity of one-five years from Monday. As per the revised rates announced by Union Bank, the deposit rates have been revised downwards by 4-12 basis points on one-five year maturity in dollar-denominated accounts. Similarly, rates have been revised for FCNR accounts in the euro, British pound, Australian dollar and Canadian dollar, among others. This is the second revision of deposit rates by the bank on FCNR accounts after September.