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Mumbai: NRIs depositing money in banks on savings accounts denominated in rupee would also get higher returns from next fiscal as interest on them would be calculated on a daily basis.
At present, these account holders get interest on their minimum balance held during tenth to the last date of a month.
The new facility would be available for NRE and NRO savings accounts.
While NRE accounts could be opened from money repatriated from outside, NRO accounts contain money received from within India.
"We advise that on a review, and in view of the present satisfactory level of computerisation in commercial bank branches, it is proposed that payment of interest on savings bank accounts (NRE and NRO) by scheduled commercial banks would be calculated on a daily product basis with effect from April 1, 2010," the Reserve Bank said in a notification here.
In order to ensure a smooth transition, banks may work out the modalities in this regard, the RBI said.
In annual credit policy, RBI said interest on savings accounts would be calculated on a daily basis from next fiscal.
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