Foreign banks join NRE deposit rate hike race

City bank became the first foreign lender to hike interest rates on NRE deposits in the make of the Reserve Bank of India deregulating the interest rate offered on deposits by non-resident early this month. City’s rates vary between 5 per cent and 8.75 per cent across maturities, and are lower than the aggressive strategies adopted by domestic lenders, who are offering as high as 10 per cent  annually. A deposit of over 30 lakh but under  50 lakh will earn an interest of 8.75 per cent for a 356-400 days bucket and 8.50 per cent for 401-1,095 days.

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