Union Bank of India has slashed interest rates on Foreign Currency Non Resident Account Deposits and Non Resident External term deposits from Monday.

FCNR US dollar deposits with a maturity period of 1-2 years will now attract an interest rate of 2.46 per cent as against 2.5 per cent earlier, a bank release said in Mumbai on Saturday.

Deposits of 2-3 years, 3-4 years and 4-5 years tenure would carry interest rates of 2.56 per cent (2.75), 2.88 per cent (3.11) and 3.10 per cent (3.34) respectively, the bank said.

FCNR deposit rates in Pound, Euro and Australian Dollar, for 1-2 year period have been revised to 5.27 per cent (5.42), 4.58 per cent (4.62) and 6.72 per cent (7.37) respectively, the bank said.

Similarly, UBI has cut rates on NRE Rupee term deposits. Interest rate on 1-2 year deposits has been slashed to  3.21 per cent (3.25 per cent) while 2-3 year and over 3-year deposits would now attract rates of 3.31 per cent (3.5)  and 3.63 per cent (3.86) respectively, the bank said.

The bank also revised rates for Exchange Earners Foreign Currency account. Deposits in US Dollar will now offer a rate of 1.74 per cent (1.71) to the depositors.

For Pound and Euro deposits, with the same tenure the bank would give 4.61 per cent (4.64) and 3.75 per cent (3.73) respectively, the statement said.