Union Bank of India has slashed its interest rates on Foreign Currency
Non Resident (B) Account Deposits (FCNR) (B) and Non Resident External
(NRE) term deposits from Monday. FCNR (B) deposits in US dollar having
a maturity of 1-2 years will now attract an interest rate of 2.46 per
cent as against 2.5 per cent earlier, a bank release stated. Deposits
in 2-3 years, 3-4 years and 4-5 years tenures will carry interest rates
of 2.56 per cent (2.75), 2.88 per cent (3.11) and 3.10 per cent (3.34)
respectively, the bank said.
Rates on FCNR (B) deposits in Pound, Euro and Australian Dollar, in
the tenure 1-2 years, have been revised to 5.27 per cent (5.42), 4.58
per cent (4.62) and 6.72 per cent (7.37) respectively, the bank said.
Similarly UBI cut its rates on NRE Rupee term deposits. Interest rate
for deposits of tenure 1-2 years has been slashed to 3.21 per cent (3.25
per cent) while 2-3 years and 3-years and above deposits will now attract
rates of 3.31 per cent (3.5) and 3.63 per cent (3.86) respectively,
the bank said. The bank also revised rates for Exchange Earners Foreign
Currency (EEFC) account. Deposits in US Dollar will now offer a rate
of 1.74 per cent (1.71) to the depositors. Deposits in Pound and Euro,
in the same tenure, will give 4.61 per cent (4.64) and 3.75 per cent
(3.73) respectively, the statement said. The move is going to have a
definite impact on the banking sector that receives significant financial
inputs from the NRIs.
