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Banks Can't Offer Higher Interest on NRE, NRO Account Than Domestic Deposits
The New Indian Express Tadepalligudem
|April 02, 2025
THE Reserve Bank has made sweeping changes to the ways banks can price their deposits.
One of the key changes in the new master direction is that a bank can't offer higher interest on NRE (non-resident external)/NRO (non-resident ordinary) accounts than those offered on domestic rupee term deposits.
Rupee deposits of non-residents under NRE and NRO deposit rates can vary only if the tenor changed or size changed—with the basic tenor being one year for term products and NRO term deposits should be seven days.
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