Banks hike deposit rates by 50 basis points

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Mumbai, Sep 17 (UNI) Close on the heels of Reserve Bank of India announcing a 50 basis points increase in Foreign Currency Non-Resident (FCNR) and NRE Deposit rates, as part of its measures to ease the pressure on forex market, several banks today hiked deposit rates by 50 basis points.

The Banks included State Bank of India, Bank of Baroda, Union Bank of India and the Allahabad Bank.

In a late evening announcement yesterday, the RBI announced a series of pre-emptive measures to contain the crisis in the forex market with the dollar shooting up heavily against the Indian currency, mainly due to external developments.

The other measures resorted to by the RBI included, selling of Foreign exchange directly or advise bank concerned from the market, additional liquidity support under Liquidity adjustment facility to the tune of one per cent and holding of second LAF auction on a daily basis, for a temporary period.

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