Many banks have announced a steep increase in interest rates on fixed deposits held by non-resident Indians (NRIs). In order to attract dollars, the Reserve Bank of India has made a move to deregulate interest rates on non-resident external (NRE) rupee deposits and ordinary non-resident accounts.

Moreover, the new rate is being offered on term deposits of 15 months 15 days to 16 months.

It may be noted that the Private lender Yes bank has increased the interest rates on fixed deposits from 3.82 per cent to 9.6 percent, held by NRIs. Similarly, Indus Ind Bank has increased the interest rates on NRE deposits from 3.82 per cent to 9.25 percent and Karur Vysya Bank has increased its rate to 10 percent.