NRE Deposit Rate Deregulation Extended for RRBs till Jan 31, 2014
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/392 · issued 02 Dec 2013 · ~2 min read
Quick answerRBI extends the freedom for Regional Rural Banks to offer uncapped interest rates on incremental NRE deposits of 3 years and above until January 31, 2014, maintaining the CRR/SLR exemption benefit.
What changed
The earlier circular allowing RRBs to set interest rates on incremental NRE deposits (3 years and above) without any ceiling, which was valid until November 30, 2013, has been extended unchanged until January 31, 2014. The exemption from CRR/SLR requirements on such deposits continues to apply.
What it means for you
RRBs can continue to offer competitive rates on longer-tenure NRE deposits to attract non-resident rupee funds without regulatory caps. This helps banks manage liquidity and deposit growth, especially as the exemption from reserve requirements improves their cost of funds. The extension gives RRBs more time to leverage this flexibility for mobilizing NRE deposits.
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
Update your NRE deposit product offerings to reflect the extended validity of uncapped rates for 3-year and above tenures.
Review your deposit mobilization strategy to maximize the benefit of CRR/SLR exemption on incremental NRE deposits.
Communicate the extension to your treasury and branch teams to ensure consistent pricing and compliance.
Monitor market rates and adjust your NRE deposit rates competitively within the allowed framework.
Who it affects
Regional Rural Banks (RRBs), NRE deposit customers, Treasury and deposit operations teams at RRBs
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 11:39 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).
What is the key change in this circular?
The circular extends the validity of the earlier directive that allows RRBs to offer interest rates on incremental NRE deposits with a maturity of 3 years and above without any ceiling. This freedom, originally set to expire on November 30, 2013, now remains in force until January 31, 2014, subject to review.
Does the CRR/SLR exemption still apply?
Yes, the exemption from CRR and SLR requirements on such incremental NRE deposits continues as per the original circular, and the current extension does not alter that benefit.
What should RRBs do to comply?
RRBs should ensure their deposit pricing policies reflect the extended period, update internal circulars, and continue to offer uncapped rates on eligible NRE deposits while adhering to the directive's terms.
📜 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 #974: RPCD.CO.RRB.BC.NO.65/03.05.33/2013-14 — "Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits" dated December 2, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/392
RPCD.CO.RRB.BC.NO. 65 /03.05.33/2013-14
December 2, 2013
The Chairmen
Regional Rural Banks
Dear Sir/Madam,
Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits
Please refer to our circular RPCD.CO.RRB.BC.No.24/03.05.33/2013-14 dated August 19, 2013 allowing banks the freedom to offer interest rates on incremental NRE deposits with maturity of 3 years and above without any ceiling in order to pass on the benefit of exemption provided on such deposits from CRR/ SLR requirements. 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 above instructions issued vide circular under reference will remain unchanged till January 31, 2014, subject to review.
3. An amending directive RPCD.CO.RRB.Dir.No.66/03.05.33/2013-14 dated December 2, 2013 is enclosed .
Yours faithfully,
(A.Udgata)
Principal Chief General Manager
RPCD.CO.RRB.Dir.No.66 /03.05.33/2013-14
December 2, 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.23/03.05.33/2013-14 dated August 19, 2013 on Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that instructions issued vide directive referred to above will remain unchanged till January 31, 2014, subject to review.
Dr.(Smt.) Deepali Pant Joshi
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/392 · issued 02 Dec 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=8611&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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