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SBI cuts NRE deposit rates

July 18, 2003 15:11 IST

Following the Reserve Bank of India directive, State Bank of India has reduced its interest rates on non-resident (external) rupee deposits by 0.8-1.3 per cent.

RBI raises forex remittance limits

The revised rate for deposits of one to less than two years is 3.7 per cent (5 per cent earlier), SBI officials said today, and added that the new rates came into effect from Thursday.

Deposits of two to less than three years and three years would attract an interest of 4.2 per cent (5.25 per cent) and 4.7 per cent (5.5 per cent) respectively, they said.

They added that the NRE savings bank deposit rate remains unchanged at 3.5 per cent.

RBI on Thursday had capped the interest on fresh NRE rupee deposits of one to three years at 2.5 per cent above London Inter-Bank Offered Rate to ensure consistency in rates for NRI deposits.

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