November
15, 2008
All Scheduled Commercial Banks
(Excluding RRBs)
Dear
Sir,
Interest Rates on Non-Resident (External) Rupee (NRE) Deposits
and FCNR(B) deposits
1. Interest Rates on Non-Resident (External) Rupee
(NRE) Deposits
Please refer to paragraph 1 of our circular
DBOD.No.Dir.BC.64/13.03.00/2008-09
dated October 15, 2008 on Interest Rates on Deposits held in Non-Resident
(External) Rupee (NRE) Accounts. In view of the prevailing market conditions,
it has been decided that until further notice and with effect from close of business
in India as on November 15, 2008, the interest rates on Non-Resident (External)
Rupee (NRE) Term Deposits will be as under:
The interest
rates on fresh Non-Resident (External) Rupee (NRE) Term Deposits for one to three
years maturity should not exceed the LIBOR/SWAP rates plus 175 basis points, as
on the last working day of the previous month, for US dollar of corresponding
maturities (as against LIBOR / SWAP rates plus 100 basis points effective from
the close of business on October 15, 2008). 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.
2. Interest Rates on FCNR(B) deposits
Please
refer to paragraph 2 of our circular No. DBOD.
Dir. BC 64 / 13.03.00 / 2008-09 dated October 15, 2008 on Interest Rates on
Deposits held in FCNR(B) Accounts. It has also been decided that until further
notice and with effect from the close of business in India as on November 15,
2008, the interest rates on FCNR(B) Deposits will be as under:
In
respect of FCNR (B) deposits of all maturities contracted effective from the close
of business in India as on November 15, 2008, interest shall be paid within the
ceiling rate of LIBOR / SWAP rates plus 100 basis points for the respective currency
/ corresponding maturities (as against LIBOR / SWAP rates plus 25 basis points
effective from close of business on October 15, 2008). On floating rate deposits,
interest shall be paid within the ceiling of SWAP rates for the respective currency
/ maturity plus 100 basis points. For floating rate deposits, the interest reset
period shall be six months.
3. All other instructions,
as contained in our Master Circulars DBOD. Dir. BC.16/13.03.00/2008-09 dated July
1, 2008, as amended from time to time, shall remain unchanged. An amending directive
DBOD.No.Dir.BC. 81 / 13.03.00/2008-09 dated November 15, 2008
is enclosed.
Yours faithfully
(Vinay
Baijal)
Chief General Manager
DBOD.
No. Dir. BC. 81 /13.03.00/2008-09
November 15, 2008
Interest
Rates on Non-Resident (External) Rupee (NRE) Deposits and FCNR(B) deposits
Interest
Rates on Deposits held in Non-Resident (External) Rupee (NRE) Deposits
"With
effect from the close of business as on November 15, 2008, the interest rates
on fresh Non-Resident (External) Rupee (NRE) Term Deposits for one to three years
maturity should not exceed the LIBOR / SWAP rates plus 175 basis points, as on
the last working day of the previous month, for US dollar of corresponding maturities
(as against LIBOR / SWAP rates plus 100 basis points effective from the close
of business on October 15, 2008). 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
FCNR(B) Deposits
' In respect of FCNR (B) deposits of
all maturities contracted effective from the close of business in India as on
November 15, 2008, interest shall be paid within the ceiling rate of LIBOR / SWAP
rates plus 100 basis points for the respective currency / corresponding maturities
(as against LIBOR / SWAP rates plus 25 basis points effective from the close of
business on October 15, 2008). On floating rate deposits, interest shall be paid
within the ceiling of SWAP rates for the respective currency / maturities plus
100 basis points. For floating rate deposits, the interest reset period shall
be six months.'
(Anand Sinha)
Executive Director