Interest
Rates on Deposits held in Non-Resident (External) Rupee (NRE) Deposits
'
With effect from close of business as on April 24, 2007, the interest rates on
fresh Non-Resident (External) Rupee (NRE) Term deposits for one to three years
should not exceed the LIBOR / SWAP rates, as on the last working day of the previous
month, for US dollar of corresponding maturities (as against LIBOR / SWAP rates
plus 50 basis points effective from close of business on January 31, 2007). The
interest rates as determined above for three year deposits will also be applicable
in case the maturity period exceeds three years. The changes in interest rates
will also apply to NRE deposits renewed after their present maturity period.'
Interest
Rates on Deposits held in FCNR(B) Accounts
'In
respect of FCNR(B) deposits of all maturities contracted effective close of business
in India as on April 24, 2007, interest shall be paid within the ceiling rate
of LIBOR / SWAP rates for the respective currency / corresponding maturities minus
75 basis points (as against LIBOR/ SWAP rates effective from close of business
minus 25 basis points on January 31, 2007). On floating rate deposits, interest
shall be paid within the ceiling of SWAP rates for the respective currency / maturity
minus 75 basis points. For floating rate deposits, the interest reset period shall
be six months.'
(Anand Sinha)
Executive Director