What changed
The interest rate ceiling on FCNR(B) deposits for RRBs, previously valid up to November 30, 2013, has been extended without any modification. The unchanged ceiling will now apply until January 31, 2014, subject to further review.
What it means for you
RRBs can continue offering FCNR(B) deposits at the same capped rates for another two months, providing stability for depositors and lenders. This extension avoids any sudden repricing of foreign currency deposits, helping RRBs manage their liability costs predictably.
What you must do
- Update internal systems and deposit rate sheets to reflect the extended validity of the existing FCNR(B) interest rate ceiling until January 31, 2014.
- Communicate the unchanged ceiling to branch managers and treasury teams to ensure compliance in new FCNR(B) deposit bookings.
- Monitor RBI announcements for any further review or change after January 31, 2014.
Who it affects
Regional Rural Banks (RRBs), Treasury and deposit operations teams at RRBs, Customers holding or opening FCNR(B) deposits with RRBs
What is the new deadline for the FCNR(B) deposit rate ceiling?
The ceiling remains unchanged and is now valid until January 31, 2014, instead of the earlier November 30, 2013 deadline.
Have the interest rate ceilings on FCNR(B) deposits changed?
No, the ceilings prescribed in the August 19, 2013 circular remain exactly the same. Only the validity period has been extended.
Which banks are covered by this directive?
This directive specifically applies to Regional Rural Banks (RRBs) in India.