The Reserve Bank of India vide its Notification No RBI/2011-12/303 DTD 16.12.2011 has deregulated the Interest rates on Non-Resident (External) , Rupee (NRE) Deposits and Non-Resident (NRO) Accounts. In view of the above, the banks are now free to determine the rate of Interest payable on these deposits. However the rate of interest offered on these account cannot be more than the rate of Interest being offered for Domestic Deposits.
The relevant notification is reproduced below for your reference.
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