RRBs Freed to Set NRE Deposit Rates for 3+ Year Tenors
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/193 · issued 19 Aug 2013 · ~2 min read
Quick answerRBI has deregulated interest rates on NRE deposits with maturity of 3 years and above for RRBs, removing the earlier ceiling. This allows RRBs to offer higher rates on these long-term NRE deposits, effective until November 30, 2013.
What changed
Previously, RRBs could not offer NRE deposit rates higher than comparable domestic rupee deposits. Now, for NRE deposits with maturity of 3 years and above, RRBs have full freedom to set interest rates without any ceiling, due to CRR/SLR exemption benefits on such deposits. The existing ceiling on NRO accounts remains unchanged.
What it means for you
RRBs can now competitively price long-term NRE deposits to attract more non-resident rupee funds, potentially improving their deposit base and liquidity. However, this freedom is temporary until November 30, 2013, subject to review, so RRBs must plan their pricing strategies within this window. The move aims to pass on the benefit of regulatory relaxations to depositors.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review and update your NRE deposit interest rate slabs for tenors of 3 years and above to reflect the new deregulated ceiling.
Communicate the revised rates to your branches and ensure compliance with the directive, valid until November 30, 2013.
Monitor market rates and competitor offerings to set attractive yet sustainable rates on long-term NRE deposits.
Continue applying the existing ceiling on NRO account interest rates as per earlier instructions.
Who it affects
Regional Rural Banks (RRBs), NRE deposit customers of RRBs, Treasury and deposit operations teams at RRBs
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 13:23 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Can RRBs now offer any interest rate on NRE deposits?
Only on NRE deposits with maturity of 3 years and above; for shorter tenors, the earlier ceiling (not higher than comparable domestic deposits) still applies.
Is this change permanent?
No, the instructions are valid only up to November 30, 2013, and are subject to review by RBI.
Does this affect NRO accounts?
No, the existing interest rate ceiling on NRO accounts continues unchanged.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1052: RPCD.CO.RRB.BC.No.24/03.05.33/2013-14 — "Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits" dated August 19, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/193
RPCD.CO.RRB. BC.No.24/03.05.33/2013-14
August 19, 2013
The Chairmen
All Regional Rural Banks (RRBs)
Dear Sir/Madam,
Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits
Please refer to our circular RPCD.CO.RRB.BC.No.45/03.05.33(C)/2011-12 dated December 19, 2011 on Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits and Ordinary Non- Resident (NRO) Accounts.
2. In terms of para 2 ibid, interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits. However, in order to pass on the benefit of exemption provided on incremental NRE deposits with maturity of 3 years and above from CRR/ SLR requirements, it has been decided to give banks the freedom to offer interest rates on such deposits without any ceiling. The extant ceiling on NRO Accounts shall continue.
3. All other instructions in this regard, as amended from time to time, will remain unchanged.
4. These instructions will be valid up to November 30, 2013, subject to review.
5. An amending directive RPCD.CO.RRB.Dir.No.23/03.05.33/2013-14 dated August 19, 2013 is enclosed .
6. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully,
(Madhavi Sharma)
Chief General Manager
RPCD.CO.RRB. Dir.No.23 /03.05.33/2013-14
August 19, 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 RPCD.CO.RRB.Dir.No.44/03.05.33(C)/2011-12 dated December 19, 2011 on Deregulation of Interest Rates on Non-Resident (External) (NRE) Deposits and Ordinary Non-Resident (NRO) Accounts, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that banks are free to offer interest rates without any ceiling on NRE deposits with maturity of 3 years and above. The extant ceiling on NRO Accounts shall continue. These instructions will be valid up to November 30, 2013, subject to review.
Yours faithfully,
Dr.(Smt.) Deepali Pant Joshi
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/193 · issued 19 Aug 2013. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8326&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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