Interest Rates on FCNR (B) Deposits

 RBI/2011-12/543

RPCD.CO RRB.No. 76 /03.05.33 (C) /2011-12

May 8, 2012

The Chairmen

All Regional Rural Banks

Dear Sir,

Interest Rates on FCNR (B) Deposits

Please refer to paragraph 2 of our circular RPCD.CO.RRB.BC.No. 36/03.05.33 (C) /2011-12 dated November 24, 2011 on Interest Rates on deposits held in FCNR (B) Accounts. In view of the prevailing market conditions, it has been decided that until further notice and with effect from the close of business in India as on May 4, 2012, the interest rates on FCNR (B) Deposits will be as under:

On floating rate deposits, interest shall be paid within the ceiling of swap rates for the respective currency/maturity plus 200 bps/300 bps as the case may be. For floating rate deposits, the interest reset period shall be six months.

2. All other instructions in this regard, as amended from time to time, will remain unchanged.

3. An amending Directive RPCD.CO.RRB.Dir.NO.75/ 03.05.33(C)/2011-12 dated May 08, 2012 is enclosed.

Yours faithfully

(C. D. Srinivasan)

Chief General Manager

RPCD.CO RRB.Dir.No.75 /03.05.33 (C) /2011-12

May 08, 2012

Interest Rates on FCNR (B) Deposits

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and in modification of the directiveRPCD.CO.RRB.Dir.No.35/03.05.33 (C) /2011-12 dated November 24, 2011 on Interest Rates on Deposits held in Non-Resident (External) (NRE) Accounts and FCNR (B) Accounts, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that with effect from the close of business in India as on May 4, 2012 the interest rates on FCNR (B) deposits shall be as under:

On floating rate deposits, interest shall be paid within the ceiling of swap rates for the respective currency/maturity plus 200 bps/300 bps as the case may be. For floating rate deposits, the interest reset period shall be six months.

(V. K. Sharma)

Executive Director