Bank of Rajasthan hikes its interest rates for NRE and FCNR (B)

On Tuesday Bank of Rajasthan hiked its interest rates for Non-Resident (External) rupee deposits (NRE) and Foreign Currency Non-Resident Deposits (Banks) FCNR(B).

A statement released by the bank stated the revised rates will be valid from June 1, 2008.

According to bank sources on Non-Resident (External) rupee deposits, the annual interest rates have been raised to 3.16 percent from 3.08 percent for one year to less than two years, with 3.46 percent from 3.18 percent for two years to less than three years and 3.81 per cent from 3.45 percent for three years and above.

The interest rate on FCNR (B) deposits in US dollar has been hiked to 2.41 percent from 2.33 percent (per annum) for time span of one year to less than two years with 2.71 percent from 2.43 percent (per annum) for two years to less than three years.

And for maturity of three years and above in the FCNR (B) category, the bank has hiked the annual interest rates from the earlier 2.70 percent to 3.06 percent for three years and above but less than four years. Likewise for the maturity of four years and above but less than five years, the new interest rate has been increased to 3.30 percent from the earlier 3.06 percent and for the five year period the rate of interest has been changed from 3.11 percent to 3.47 percent.

Meanwhile in Britain, also the interest rates on FCNR (B) deposits have also been revised from 5.06 percent to 5.40 percent for one year to less than two years and for time period between two and three years the bank has decided to increase it from 4.65 percent to 5.26 percent. For the three year period, the bank has decided to hike it from the earlier 4.62 percent to 5.21 percent.

Moreover the annual interest rates on FCNR (B) deposits in Euro have also been hiked from 4.21 percent to 4.34 percent for the period between one year and two year. For the maturity between two and three years the bank has hiked the interest rate from 3.78 percent to 4.23 percent while for the three year period, the bank has changed it from 3.68 percent to 4.11 percent.