All State Co-operative Banks
(StCBs) and
District Central Co-operative Banks (DCCBs)
Dear
Sir,
Interest Rate on Non-Resident (External) Rupee
(NRE) Deposits
Please refer to our Circular RPCD.CO.RF.BC.No.29/07.38.01/2008-09
dated September 17, 2008 on Interest Rate on NRE Rupee Deposits. On a review,
it has been decided that until further notice and with effect from close of business
in India as on October 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 100 basis points,
as on the last working day of the previous month, for US dollar of corresponding
maturities (as against LIBOR / SWAP rates plus 50 basis points effective from
close of business on September 16, 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. The other instructions as contained
in our Circular RPCD.No.RF.Dir.BC 54/D.1-87/88 dated November 2, 1987 shall remain
unchanged. An amending directive RPCD.CO.RF.BC.Dir.No.51/07.38.01/2008-09
dated October 15, 2008 is enclosed.
Yours faithfully,
(G.
Srinivasan)
Chief General Manager-in-Charge
RPCD.CO.RF.BC.Dir.No.51/07.38.01/2008-09
In
exercise of the powers conferred by Section 35 A of the Banking Regulation Act,
1949 (As Applicable to Co-operative Societies) and in partial modification of
Directive RPCD No.Dir.BC.53/D.1-87/88 dated November 2, 1987, as amended from
time to time, on Interest Rates on Deposits, the Reserve Bank of India being satisfied
that it is necessary and expedient in the public interest so to do, hereby directs
undernoted changes in the interest rates on Non-Resident (External) Rupee (NRE)
deposits:
'With effect from the close of business as on
October 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 100 basis points, as on the last working day of the previous month,
for US dollar of corresponding maturities (as against LIBOR /SWAP rates plus 50
basis points effective from close of business on September 16, 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.'
(Anand
Sinha)
Executive Director