Interest Rates on FCNR(B) Deposit Ceiling Raised on Medium Term Maturities
[RPCD.CO.RRB.BC.No.22/03.05.33/2013-14
dated 19th August 2013]
Sub:
Interest Rates on FCNR(B) Deposits
Please
refer to our circular RPCD.CO.RRB.No.76/03.05.33(C)/2011-12 dated May 8, 2012 on
Interest Rates on Deposits held in FCNR(B) Accounts.
In view of the prevailing market conditions, it has been decided that until
further notice and with effect from the close of business in India as on August
14, 2013, the interest rate ceiling on FCNR(B)
Deposits will be as under:
|
Maturity
Period |
Existing
|
Revised
|
|
1
year to less than 3 years |
LIBOR/Swap
plus 200 basis points |
No
change |
|
3
- 5 years |
LIBOR/Swap
plus 300 basis points |
LIBOR/
SWAP plus 400 basis points |
On
floating rate deposits, interest shall be paid within the ceiling of swap rates
for the respective currency/maturity plus 200 bps/ 400 bps as the case may be.
For floating rate deposits, the interest reset period shall be six months.
2. All other
instructions in this regard, as amended from time to time, will remain
unchanged.
3. These
instructions will be valid up to November 30, 2013, subject to review.
4. An amending directive
RPCD.CO.RRB.Dir.No.21/03.05.33(C)/2013-14 dated August 19, 2013 is enclosed.
5. Please
acknowledge receipt to our Regional Office concerned.
RPCD.CO.RRB.Dir.No.
21 /03.05.33/2013-14 August 19, 2013
Interest
Rates on FCNR(B) Deposits
In
exercise of the powers conferred by Section 35A of the Banking Regulation Act,
1949, and in modification of the directive RPCD.CO.RRB.Dir.No.75/03.05.33(C)/2011-12
dated May 8, 2012 on Interest Rates on FCNR(B) Deposits, the Reserve Bank of
India being satisfied that it is necessary and expedient in the public interest
so to do, hereby directs that with effect from the close of business in India
as on August 14, 2013 the interest rate ceiling on FCNR(B) deposits shall be as
under:
|
Maturity
Period |
Existing
|
Revised
|
|
1
year to less than 3 years |
LIBOR/Swap
plus 200 basis points |
No
change |
|
3
- 5 years |
LIBOR/Swap
plus 300 basis points |
LIBOR/
SWAP plus 400 basis points |
On
floating rate deposits, interest shall be paid within the ceiling of swap rates
for the respective currency/maturity plus 200 bps/400 bps as the case may be.
For floating rate deposits, the interest reset period shall be six months.
These
instructions will be valid up to November 30, 2013, subject to review.
Annex
Penal
Interest Rates which are linked to the Bank Rate
|
Item
|
Existing
Rate |
Revised
Rate (Effective
from July 15, 2013) |
|
Penal
interest rates on shortfalls in reserve requirements (depending on duration
of shortfalls). |
Bank
Rate plus 3.0 percentage points (11.25 per cent) or Bank Rate plus 5.0
percentage points (13.25 per cent). |
Bank
Rate plus 3.0 percentage points (13.25 per cent) or Bank Rate plus 5.0
percentage points (15.25 per cent). |