State-run lender, Punjab National Bank today announced revised interest rates on foreign currency deposits.

The bank is taking Foreign Currency Non Resident Bank Deposits (FCNR-B) in dollars at 2.59% and euro at 3.34% for five years. The Non- Resident (External) Rupee (NRE) Term Deposits will fetch 3.64% for 3-5 years maturity.

The step comes after Reserve Bank of India raised the cap on interest rates on foreign currency deposits in order to increase foreign funds inflows.

State Bank of India, Union Bank of India and Indian Overseas Bank had increased interest rates on foreign currency deposits last week.