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RBI/2005-06/370
UBD.(PCB). BPD.No. Cir 48 /13.01.000/2005-06
April 20, 2006
The Chief Executive Officers of
All Primary (urban) Co-operative Banks
Dear Sir/ Madam,
Interest Rate on Non-Resident (External) Rupee
(NRE) Deposits - UCBs
Please refer to our circular UBD.PCB.Cir
17/13.01.000/2005-06 dated November 22, 2005 read with UBD
(PCB) BPD Cir No. 42/13.01.000/2005-06 dated April 5, 2006 on the captioned
subject.
2. On a review, it has been decided that until
further notice and with effect from close of business in India on April 18,
2006, the interest rates on Non-Resident (External) Rupee (NRE) Term Deposits
will be as under:
i. The interest rates on fresh repatriable
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 plus 100 basis points (as
against 75 basis points effective since November 17, 2005).
ii. The interest rates as determined at para 2 (i) for three
year deposits should also be applicable in case the maturity period exceeds
three years.
iii. The changes in interest rates will also
apply to NRE deposits renewed after their present maturity period.
3. A directive amending the earlier directive
dated November 22, 2005 on the interest rate is annexed. All Other terms and
conditions applicable to the NRI deposits remain unchanged.
4. Please acknowledge the receipt to the concerned
Regional Office of Reserve Bank of India.
Yours faithfully
(N.S.Vishwanathan)
Chief General Manager-in-charge
UBD.No.Dir. 2 /13.01.000/2005-06
April 20, 2006
Interest Rate on Non-Resident (External) Rupee
(NRE) Deposits
In exercise of the powers conferred by Section
35A of the Banking Regulation Act, 1949 (AACS) and in partial modification of
directive UBD.No. Dir 1/13.01.000/2005-06 dated November 22, 2005 on Interest
Rates on Non Resident (External) Rupee (NRE) deposits, the Reserve Bank of India
being satisfied that it is necessary and expedient in the public interest so
to do, hereby effects the under noted changes in the interest rates on Non Resident
(External) Rupee (NRE) deposits.
"The interest rates on Non-Resident (External)
Rupee (NRE) deposits for one to three years maturity contracted with effect
from close of business in India on April 18, 2006 shall not exceed the LIBOR/
SWAP rates of the last working day of the previous month for US dollar of corresponding
maturities plus 100 basis points. The interest rate 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 term deposits renewed
after their present maturity period".
(V.S Das)
Executive Director
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