DBOD.No. Dir.BC.35/13.03.00/98
April 29,1998
Vaishakha 9,1920 (Saka)
Interest Rates on Deposits
held under Foreign Currency Non-Resident Accounts (Banks) Scheme
I.Interest Rates
The existing paragraph (vi) of Directive DBOD No.
BC.115/13.01.09/93 dated April 29, 1993 as amended from time to time, realting
to deposits accepted under Foreign Currency Non-resident Accounts (Banks)
Scheme, shall be subjected as under:
(i)
in respect
of deposits of six months and above but less than one year, and floating rate deposits , interest shall be paid at
a rate not in excess of LIBOR minus 25 basis points for the respective
currency/maturity. For floating rate deposits , the interest reset period shall
be six months.
(ii) In respect of deposits of maturity of one year and above, the interest shall be paid within the ceiling of Swap rates for the respective currency/maturity plus 50 basis points.
(iii) The LIBOR/Swap rates as on the last working day of the preceding week would form the base for fixing the ceiling rates for the interest rates that would be offered effective the following week.
II. Payment of Interest on
Overdue FCNR Deposits
The existing paragraph 5 of Bank’s Directive DBOD No. Dir. BC.
95/C.347(I)-86 dated September 11,1986 as amended from time to time, shall be
modified as under:
The bank may, at its discretion,
renew an overdue deposit or a portion of thereof provided the overdue period
from the date of maturity till the date of renewal (both dates inclusive), does
not exceed 14 days and the rate of interest payable on the amount of the
deposit so renewed shall be the appropriate rate of interest for the period of
renewal as prevailing on the date of maturity or on the date when the depositor
seeks renewal , whichever is lower. In the case of overdue deposits where the
overdue period exceeds 14 days and if the depositor places the entire amount of
overdue deposit or a portion thereof as a fresh FCNR (B) Deposit,banks may fix
their own interest rates for the overdue period on the amount so placed as a
fresh term deposit.
2. All other provisions of Directive
DBOD.No. Dir.BC.95/.347(I)-86 dated September 11, 1986 and
DBOD.No.Dir.BC.115/13.01.09-93 dated April 29, 1993, as amended from time to
time , shall remain unchanged.
3. The effective date on such
changes shall be announced by banks as early as possible.
(S. Gurumurthy)
Executive Director