New Delhi-based, the Oriental Bank of Commerce has revised its interest rates for FCNR (B) term deposits and NRE term deposits following relaxation of rules by the RBI to support a falling rupee.

The revised interest rates of the bank will be effective from November 23. The bank has also revised FCNR (B) deposit rates on all maturities from 1-5 years for US Dollars, British pounds, Euro, Australian Dollar, Canadian Dollar and Japanese Yen.

The RBI has relaxed its regulations to allow companies to borrow abroad and it also increased interest rates for Indians living aboard in order to help contain the fall in the Indian rupee. The revised rate will come into force with immediate effect. The move by RBI is to increase attractiveness of funds to boost inflow of funds at the time of global economic uncertainties.

The RBI said in a statement that companies in the country can now pay as much as 3.5 percentage points over the London Interbank Offered Rate for loans longer than three years and up to five years. This is an increase of 0.5 percentage point on loans. The RBI also increased the interest by 25 basis points and 100 basis points for two different deposit plans.

Meanwhile, the India rupee continued to fall due to uncertainties linked with the Euro-zone debt crisis. The Indian national currency fell 0.3 percent on Friday to 52.23/24 per dollar compared to a close of 52.065/075 on Thursday.