February 7, 2014
The Chief Executive Officers
All AD Category -1 UCBs
Interest Rates on FCNR(B) Deposits
Please refer to our circular UBD.BPD.AD.Cir.No 2/13.01.000/2013-14 dated August 21, 2013 prescribing interest rate ceilings on FCNR (B) deposits for maturity period of one year to less than three years and three to five years, respectively. These instructions were valid upto November 30, 2013. Further, in terms of para 2 of our circular UBD.BPD.AD. Cir 5/13.01.000/2013-14 dated December 02, 2013, the validity of these instructions were extended to January 31, 2014, subject to review.
2. On a review and in order to give banks some time, it has been decided that the interest rate ceiling on FCNR (B) deposits prescribed vide circular dated August 21, 2013, referred to above, will continue till February 28, 2014 and will revert to the ceiling prior to August 14, 2013, as under :
With effect from March 1, 2014
1 year to less than 3 years
LIBOR / Swap plus 200 basis points
3 - 5 years
LIBOR / Swap plus 400 basis points
LIBOR / SWAP plus 300 basis points
3. All other instructions in this regard, as amended from time to time, will remain unchanged.
Principal Chief General Manager