RBI/2013-14/387
DBOD. No. Dir. BC.71/13.03.00/ 2013-14

November 29, 2013

All Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir/ Madam

Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits

Please refer to our circular DBOD. Dir. BC. 40/13.03.00/2013-14 dated August 14, 2013 allowing banks the freedom to offer interest rates on incremental NRE deposits with maturity of 3 years and above without any ceiling in order to pass on the benefit of exemption provided on such deposits from CRR/ SLR requirements. In terms of para 4 thereof, these instructions are valid up to November 30, 2013, subject to review.

2. In this connection, we advise that the above instructions issued vide circular under reference will remain unchanged till January 31, 2014, subject to review.

3. An amending directive DBOD.Dir.BC.70/13.03.00/2013-14 dated November 29, 2013 is enclosed.

Yours faithfully,

(Rajesh Verma)
Chief General Manager

Encl: As above

DBOD.Dir.BC. 70/13.03.00/2013-14

November 29, 2013

Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and in modification of the directive DBOD. Dir. BC. 39/ 13.03.00/ 2013-14 dated August 14, 2013 on Deregulation of 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 directs that instructions issued vide directive referred to above will remain unchanged till January 31, 2014, subject to review.

(B. Mahapatra)
Executive Director