Banks cut FCNR rates

Banks cut FCNR rates
ENS ECONOMIC BUREAU

MUMBAI, JAN 13: State Bank of India today announced a lowering of its interest rate on foreign currency non-resident (B) deposits in US dollar and Pound sterling following a recent half per cent cut in US Federal Reserve and a stable interest regime prevailing in the country.

The bank reduced the rates by 50-90 basis points for US dollar and Pound sterling deposits across all maturities to 5.50 per cent per annum effective from January 15, SBI said in a release here today. "This downward revision was expected with the Fed rate cut, LIBOR rates ruling low and a stable interest scene in India," a bank official said.

The earlier rates for US dollar deposits were above six per cent while for Pound sterling it was six per cent. However, for euro and Japanese Yen deposits, the rates remain unchanged, the release said adding, the revised rates were applicable only for fresh deposits and renewals of matured deposits.

Bank of India also revised interest rates on US dollar, Pound Sterling, euro and Japanese Yen deposits effective from January 15.