SBI Raises NRI Deposit Rates to 574 bps

State Bank of India, the country's biggest lender, has raised term deposit rates for non-resident Indians' external accounts by up to 574 bps from January 1.

Deposits below 10 million rupees will earn interest rates of 9.25 percent, while those above 10 million rupees will earn 9 percent for 1-2 years maturity from 3.82 percent earlier, it said in a press release.

The Reserve Bank of India deregulated interest rates on non-resident external rupee deposits and ordinary non-resident accounts earlier this month to provide greater flexibility to banks to attract dollars.