Private sector bank, Yes Bank has announced that it is increasing interest rates for non-resident investors, a move aimed at attracting more customers in the segment.

The bank has increased the interest rates to 7% for over Rs. 1 lakh balance, for all Non Resident Savings Accounts. The bank will offer 6 per cent interest for balance up to Rs. 1 lakh.

The interest rates on NRE Fixed Deposits have also been increased to the level similar to the Resident Term Deposit Rates of 1 year and above, but with a cap of 9.60%. the move comes after the Reserve Bank of India (RBI) deregulated the Non Resident Deposit rates and allowed banks to determine their own interest rates.

Dr Rana Kapoor, Founder, Managing Director & CEO, YES BANK said "In light of the current volatile global economic situation, we believe that the new YES BANK deposit rates will be a highly beneficial and an attractive source of returns for our customers."

Small and mid-sized banks in the country are now aiming to boost their non-resident deposits by offering higher interest rates than many of the larger banks in India.