YES The bank raises the interest rate on fixed deposits NRE and FCNR while the standards are relaxed
Private sector lender YES Bank raised the interest rate on non-resident (NRE) fixed-term deposits from 50 to 75 basis points (bps) and also increased the rate on non-resident foreign currency deposits. -residents (FCNR). It comes after the Reserve Bank of India (RBI) relaxed some standards to help additional foreign flows.
As a result, the NRE fixed deposit rate for a term of 12 to 18 months has been revised to 7.01 percent per annum. The interest rate for a term longer than 18 months has been revised to 7.25 percent. The new rates are for deposits below Rs 5 crore.
In addition, the lender offers an interest rate of 4.05% on FCNR USD deposits with a term of 12 to 24 months and 4.25% for a term of 24 to 36 months, the bank said in a press release on Friday.
The RBI has taken several measures to attract dollars with the aim of protecting the local currency and retaining the currencies. It exempted banks from maintaining the cash reserve ratio (CRR) and the regulatory liquidity ratio (SLR) for additional NRE (external non-residential) and FCNR (B) (non-resident foreign currency bank) deposits from the fortnight of declaration beginning July 30.
This easing will be available for deposits mobilized until November 4th. Banks were also allowed to raise new FCNR(B) and NRE deposits without reference to interest rate regulations, effective July 7. This relaxation will be available for the period until October 31, 2022.
“The recent easing announced by the RBI to attract foreign exchange inflows has allowed us to raise interest rates on our NRE and FCNR fixed deposit offerings, extending the benefits to our customers. of the various advancements the Bank has undertaken in recent years for the benefit of customers, which will enable us to further diversify and grow YES Bank’s retail portfolio,” said Prashant Kumar, MD and CEO, YES Bank.