Reserve Bank of India
Central Office
Department Of Banking Operations & Development
Centre - 1, World Trade Centre
Cuffe Parade, Colaba, Mumbai - 400 005 DBOD No. Dir. BC.108/13.01.09/99 October 29, 1999
Kartika 07, 1921(Saka) Foreign Currency (Non-Resident) Accounts (Banks) Scheme In exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that in the Banks directive DBOD No. BC.115/13.01.09/93 dated April 29, 1993, the existing Clauses (vii) and (viii) shall be substituted by the following with immediate effect: "(vii) The deposits shall be accepted under the Scheme for the following maturity periods: (a) One year and above but less than two years (b) Two years and above but less than three years (c) Three years only (viii) (a) when a loan or an advance is granted against a term deposit which stands in the name of : (i) the borrower either singly or jointly or (ii) a ward and the advance is made to the guardian of the ward, or (iii) one of the partners of a partnership firm and the advance is made to the said firm, or (iv) the proprietor of a proprietary concern and the advance is made to such concern, the banks shall be free to charge interest rates without reference to their own Prime Lending Rate. (b) when a loan or advance is granted against a deposit to any person other than that mentioned at (a) above, the interest rate chargeable shall be at the rate as prescribed in terms of the Reserve Bank of Indias directive relating to Interest Rates on Advances. (c) when a loan or advance is granted out of resources mobilized under the scheme, interest rate chargeable shall be at the rate as prescribed in terms of Reserve Bank of Indias directive relating to Interest Rates on Advances". (G.P. Muniappan)
Executive Director |