You are here: Home » Finance » News » Banks
Asian countries in talks for settling trade in domestic currencies
RBI governor Shaktikanta Das says will ensure orderly movement in rupee
Business Standard

SBI, ICICI Bank up interest rates on certain foreign currency bank deposits

According to SBI's website, the interest rate on US dollar category deposits with maturities up to 2 and 3 years are up by 85 basis points to 2.85 per cent and 3 per cent

Topics
sbi | ICICI Bank  | Interest rate hike

Subrata Panda  |  Mumbai 



State bank of india, SBI

State Bank of India (SBI) and have hiked on foreign non-resident (FCNR) bank deposits after the Reserve Bank of India (RBI) last week eased the interest cap till October 31, 2022.

According to SBI’s website, the interest rate on US category deposits with maturities up to 2 and 3 years are up by 85 basis points to 2.85 per cent and 3 per cent. Interest rate on maturities above 3 years has been raised by 80 basis points. Accordingly, 3-year to less than 4-year maturity will attract an interest rate of 3.10 per cent; 4-years to less than 5-years maturity will fetch an interest rate of 3.15 per cent; and 5-year maturity will fetch an interest rate of 3.25 per cent.

The interest rate on British Sterling has been raised by 25 bps across maturities. on Canadian and Australian deposits were increased by 50 basis points as well.

ICICI Bank, India’s second largest private sector lender, has raised interest on its US deposits, following the RBI’s measures to attract foreign flows.

Also Read: ICICI Bank, SBI, BoB: Seven bank stocks cross 200-DMA, may surge 15%

The RBI last took several steps to attract dollars in a bid to protect the local and conserve foreign exchange. It exempted from maintaining the (CRR) and statutory liquidity ratio (SLR) for incremental NRE (non-residential external) and FCNR (B) (foreign non-resident-bank) deposits with effect from the reporting fortnight beginning July 30.

This relaxation will be available for deposits mobilised up to November 4, 2022. also have been allowed to raise fresh FCNR (B) and NRE deposits without reference to the regulations on interest rates, with effect from July 7. This relaxation will be available for the period up to October 31, 2022.

In 2021-22, had raised $13.9 billion by non-resident deposits, of which $ 10 billion was by NR(E)RA deposits and $1.4 by FCNR (B) deposits.

In 2022, India’s rupee has depreciated 6.6 per cent versus the dollar.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, July 12 2022. 18:47 IST

.