What changed
The master circular was updated to include instructions issued between July 1, 2008 and June 30, 2009. It supersedes the previous master circular dated July 1, 2008. The document consolidates all existing directives on FCNR(B) deposits into a single reference.
What it means for you
Banks must ensure their FCNR(B) deposit operations align with the latest consolidated guidelines. This includes adhering to updated rules on interest rates, premature withdrawals, and advances against these deposits. Non-compliance could lead to regulatory issues.
What you must do
- Replace the old 2008 master circular with this updated version for all FCNR(B) deposit operations.
- Review and update internal policies on FCNR(B) interest rates, premature withdrawals, and advances to match the circular.
- Train staff on the consolidated guidelines, especially sections on NRI account conversions and interest on overdue deposits.
- Ensure systems reflect the correct interest rate structure as per Annex 1 of the circular.
Who it affects
All scheduled commercial banks (excluding RRBs), NRI depositors with FCNR(B) accounts, Bank staff handling FCNR(B) deposits and advances
What is the purpose of this master circular?
It consolidates all RBI directives on FCNR(B) deposit interest rates issued up to June 30, 2009, replacing the July 1, 2008 circular.
Does this circular apply to Regional Rural Banks?
No, it applies to all scheduled commercial banks excluding Regional Rural Banks (RRBs).
What key areas does the circular cover?
It covers interest rates, premature withdrawals, advances against deposits, NRI account conversions, and other operational guidelines for FCNR(B) accounts.