|
DBOD. No. Dir. BC.75/13.01.09/2003-04
|
April 17, 2004
|
Interest Rate on Deposits under
Non-Resident(External) Rupee Accounts (NRE Accounts)
In exercise of the powers conferred
by Section 35A of the Banking Regulation Act, 1949 and in modification of Master
Circular DBOD. No. Dir. BC.11/ 13..03.00/ 2003-04 dated August 14,
2003 as amended from time to time on interest rates on deposits, it has been
decided to effect the undernoted changes in the interest rates on NRE term and
savings Deposit Accounts.
2. i) Interest rate on NRE Term
Deposits
The interest rates on Non Resident
(External) Rupee (NRE) Deposits for one to three years maturity, contracted
effective close of business in India on April 17, 2004, shall not exceed the
LIBOR / SWAP rates for US dollar of corresponding maturity.
The interest rates as determined
above shall also be applicable in case the maturity period exceeds three years.
The above changes in interest rates
will also apply to NRE deposits renewed after their present maturity period.
(ii) Interest Rate on Savings
Deposits under Non-Resident (External) (NRE) Accounts
The interest rate on NRE savings
deposits shall not exceed the LIBOR/SWAP rate for six months maturity on US
dollar deposits and may be fixed quarterly on the basis of the LIBOR/SWAP rate
of US dollar on the last working day of the preceding quarter.
(Shyamala Gopinath)
Executive Director