Mumbai, July 18: Following the Reserve Bank of India's directive, State Bank of India (SBI) has revised downwards its interest rate on non-resident (external) rupee deposits by 0.8 per cent to 1.3 per cent. The revised rate for deposits of tenure one to less than two years is 3.7 per cent per annum (five per cent earlier), SBI sources said on Friday and added that new rates came into effect from Thursday.

The deposits of tenure 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.
Sources said the NRE savings bank deposit rate remain 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 (LIBOR) to ensure consistency in rates to NRI deposits. Bureau Report