There was not much of interest in NRI deposit in India prior to 2012 due to negligibel interest rate around 3%. Since RBI has deregulated interest rates for NRE rupee deposits and ordinary non-resident accounts from New Year 2012, some of the public sector bank like Bank of india has raised interest rates on non-resident external accounts upto 9% for the period of one year. Beyond this period, the interest will be offered 8% for 2 to 3 years deposit period. Above this, the interest rate applicable will be 7% . HDFC bank and IndusInd bank also raised the interest rates above 9% for these deposits. The earlier interest rates prevailing was around 3.5%. Soon SBI, ICICI bank and PNB will be joining the race by raising the rates to 9.25%.
So those NRIs who are getting interest @1% in their country can get the interest benefit from india by remitting the money. The chance of indian currency depreciating is not much from the present level of Rs.52. At best, it can go down upto Rs.54 and reverside appreciation , there is chance to upto Rs.48.
NRIs can use this benefit now .
C.R. Venkata Ramani