Deregulation of NRE & NRO interest rates

RBI has vide its circular dated 16th December 2011 deregulated the interest rates on NRE Deposits & NRO accounts. Savings a/cs and term deposits of one year and above maturity in case of NRE and savings deposits in case of NRO has been freed with the caveat that banks cannot offer higher rates to NRE deposits than that is offered to resident deposits. Revised deposit rates will apply only to fresh deposits and to renewal of matured deposits. Text of the RBI circular is available here