DBOD No. Dir BC 109/13.03.00/2000-01

April 19, 2001
Chaitra 29 ,1923(S)

All Public Sector Banks

Dear Sirs,

Interest Rates on Deposits -
Capital Gains Accounts Scheme, 1988

Please refer to our Notification DBOD No. Dir.BC 159/13.03.00/2000 dated April 01, 2000 in terms of which the banks were advised of the rates of interest on deposits made under Capital Gains Accounts Scheme, 1988, introduced by Government of India. It has been decided to reduce the minimum maturity period for deposits under Account "B" to 7 days from the present 15 days at the discretion of individual banks. But, this facility will be available only in respect of single term deposit of Rs.15 lakh and above where banks have the freedom to offer differential rates according to size of deposits. Accordingly, our Notification DBOD No. Dir.BC.108/13.03.00/2000-01 dated April 19, 2001 is enclosed.

 

Yours faithfully,

(M.R. Srinivasan)
Chief General Manager-in-Charge

 

DBOD No. Dir BC 108/13.03.00/2000-01

 

April 19, 2001
Chaitra 29 ,1923(S)

NOTIFICATION

Interest Rates on Deposits -
Capital Gains Accounts Scheme, 1988

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and paragraph 8 of the Capital Gains Accounts Scheme, 1988 and in modification of its Notification DBOD. No. Dir.BC 159/13.03.00/2000 dated April 01, 2000, Reserve Bank of India, hereby specifies that the interest paid by the banks on deposits in Account "A" and "B" under the Capital Gains Accounts Scheme, 1988 shall be as hereunder:

Category of Account	Per cent per annum
i) Account "A"	4.0
ii) Account "B"
(a) Below Rs. 15 lakh,	Free
15 days and above
(b) Rs.15 lakh and above,	Free
7 days and above

(K.L. Khetarpaul)
Executive Director