FCNR(B) Deposit Rate Ceiling Extended to Jan 31, 2014
Current · Source: Reserve Bank of India · RBI/2013-14/388 · issued 29 Nov 2013 · ~1 min read
Quick answerRBI has extended the existing interest rate ceiling on FCNR(B) deposits unchanged until January 31, 2014. The earlier deadline was November 30, 2013. Banks must continue to apply the same rate caps for these foreign currency deposits.
The rule, in the simplest words
Banks can keep the same highest allowed interest rate on FCNR(B) deposits (foreign currency deposits from people living outside India) until January 31, 2014.
The old deadline was November 30, 2013, but RBI (India's central bank) pushed it to January 31, 2014, without changing the rate limits.
RBI might still change the rates before the new deadline, so banks must watch for updates.
This rule applies to all scheduled commercial banks except RRBs (small rural banks).
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, checks her bank's system to update the FCNR(B) deposit rate ceiling expiry date from November 30, 2013, to January 31, 2014. She tells her team that the same capped rates still apply, so they can keep offering those foreign currency deposits without any price change for two more months.
What changed
The interest rate ceiling on FCNR(B) deposits, previously set to expire on November 30, 2013, has been extended without any change. The new validity period runs through January 31, 2014, subject to further review. No modifications were made to the rate limits themselves.
What it means for you
Banks can continue offering FCNR(B) deposits at the same capped rates for another two months, providing stability for their foreign currency deposit pricing. This extension gives lenders more time to manage their FCNR(B) liability costs without immediate repricing pressure. However, the 'subject to review' clause means RBI could still alter rates before the new deadline.
What you must do
Update internal systems and product documentation to reflect the extended validity of existing FCNR(B) rate ceilings until January 31, 2014.
Communicate the unchanged rate caps to treasury and branch operations teams to ensure compliance in deposit pricing.
Monitor RBI announcements closely for any mid-term review changes before the January 31 deadline.
Review FCNR(B) deposit portfolio to assess impact of stable rates on funding costs and margins.
Who it affects
All scheduled commercial banks (excluding RRBs) offering FCNR(B) deposits, Treasury and asset-liability management teams, Retail and corporate depositors with FCNR(B) accounts
❓ Common questions
What is the new deadline for the FCNR(B) interest rate ceiling?
The ceiling remains unchanged and is now valid until January 31, 2014, instead of the earlier November 30, 2013 deadline.
Have the actual interest rate limits on FCNR(B) deposits changed?
No, the rate ceilings themselves have not been altered. Only the validity period has been extended.
Does this circular affect all banks?
It applies to all scheduled commercial banks except Regional Rural Banks (RRBs).
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/388
DBOD. No.Dir.BC.73/13.03.00/2013-14
November 29, 2013
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir/Madam
Interest Rates on FCNR (B) Deposits
Please refer to our circular DBOD. Dir. BC. 38/13.03.00/2013-14 dated August 14, 2013 advising interest rate ceilings on FCNR (B) deposits for maturity period of one year to less than three years and three to five years, respectively. In terms of para 4 thereof, these instructions are valid up to November 30, 2013, subject to review.
2. In this connection, we advise that the interest rate ceiling prescribed vide circular under reference will remain unchanged till January 31, 2014, subject to review.
3. An amending directive DBOD.Dir.BC. 72/13.03.00/2013-14 dated November 29, 2013 is enclosed .
Yours faithfully,
(Rajesh Verma)
Chief General Manager
Encl: As above
DBOD.Dir.BC.72/13.03.00/2013-14
November 29, 2013
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 directive DBOD.No.Dir.BC.37/13.03.00/2013-14 dated August 14, 2013 on Interest Rates on FCNR(B) Deposits, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that the interest rate ceiling on FCNR (B) deposits prescribed vide Directive referred to above will remain unchanged till January 31, 2014, subject to review.
(B. Mahapatra)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/388 · issued 29 Nov 2013. The plain-English explanation above is BankPulse’s own independent summary.
Communicate the unchanged rate caps to treasury and branch operations teams to ensure compliance in deposit pricing.
💻 IT / Systems
Update internal systems and product documentation to reflect the extended validity of existing FCNR(B) rate ceilings until January 31, 2014.
📜 Compliance
Monitor RBI announcements closely for any mid-term review changes before the January 31 deadline.
Review FCNR(B) deposit portfolio to assess impact of stable rates on funding costs and margins.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (All scheduled commercial banks (excluding RRBs) offering FCNR(B) deposits, Treasury and asset-liability management teams, Retail and corporate depositors with FCNR(B) accounts), your first concrete step on “FCNR(B) Deposit Rate Ceiling Extended to Jan 31, 2014” is: “Update internal systems and product documentation to reflect the extended validity of existing FCNR(B) rate ceilings until January 31, 2014.” (RBI issued this 29 Nov 2013).
Circular: RBI/2013-14/388 -- FCNR(B) Deposit Rate Ceiling Extended to Jan 31, 2014
Issued: 29 Nov 2013
Action required: Update internal systems and product documentation to reflect the extended validity of existing FCNR(B) rate ceilings until January 31, 2014.
Action required: Communicate the unchanged rate caps to treasury and branch operations teams to ensure compliance in deposit pricing.
Action required: Monitor RBI announcements closely for any mid-term review changes before the January 31 deadline.
Action required: Review FCNR(B) deposit portfolio to assess impact of stable rates on funding costs and margins.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=8602&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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