What changed
This Master Circular replaces the July 1, 2011 version, incorporating all instructions issued up to June 30, 2012. It consolidates and updates guidelines on FCNR(B) deposits, including interest rate directives, without introducing new policy changes.
What it means for you
Banks must ensure their FCNR(B) deposit operations align with the latest consolidated guidelines, particularly on interest rate setting and advance restrictions. The circular reinforces existing rules, reducing ambiguity for compliance and audit purposes.
What you must do
- Review and update internal FCNR(B) deposit policies to match the 2012 Master Circular.
- Train staff on key provisions like premature withdrawal rules and interest on overdue deposits.
- Ensure advances against FCNR(B) deposits comply with quantum and margin limits specified.
- Maintain records of circulars consolidated in the appendix for audit readiness.
Who it affects
All scheduled commercial banks (excluding RRBs), NRI depositors holding FCNR(B) accounts, Bank staff handling NRI deposit operations
What is the minimum maturity for FCNR(B) deposits under this circular?
The minimum maturity period is one year, effective from October 1999, as per the updated guidelines.