NRE Deposit Rate Deregulation Extended for Co-op Banks
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/394 · issued 02 Dec 2013 · ~1 min read
Quick answerRBI extends the freedom for State and Central Co-operative Banks to set interest rates on incremental NRE deposits of 3 years and above without any ceiling, now valid until January 31, 2014, subject to review.
What changed
The earlier circular allowing co-operative banks to offer uncapped rates on incremental NRE deposits of 3 years and above was set to expire on November 30, 2013. RBI has now extended this relaxation until January 31, 2014, keeping all other terms unchanged.
What it means for you
Co-operative banks can continue to attract NRE deposits by offering competitive rates without worrying about CRR/SLR requirements on these incremental deposits. This extension gives banks more time to leverage the exemption and improve their NRE deposit mobilisation strategies.
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 deposit pricing policies to reflect the extended validity of the deregulation until January 31, 2014.
Continue offering competitive rates on incremental NRE deposits of 3 years and above to maximise the benefit of CRR/SLR exemption.
Monitor RBI announcements for any further review or changes after January 31, 2014.
Ensure compliance with the directive and maintain records of incremental NRE deposits for regulatory reporting.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (CCBs), NRE depositors and NRIs banking with co-operative banks
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 11:38 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).
Does this extension apply to all NRE deposits or only incremental ones?
The deregulation applies only to incremental NRE deposits with a maturity of 3 years and above, as per the original circular.
Are there any changes to the CRR/SLR exemption?
No, the exemption from CRR/SLR requirements on these incremental deposits remains unchanged under the extended directive.
📜 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 #978: RPCD.RCB.BC.Dir.No.67/07.51.014/2013-14 — "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/2013-14/394
RPCD.RCB.BC.No. 68 /07.51.014/2013-14
December 02, 2013
All State and Central Co-operative Banks
Dear Sir / Madam,
Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits
Please refer to our circular RPCD.CO.RCB.Dir.BC.No.26/07.51.014/2013-14 dated August 22, 2013 allowing State and Central Cooperative 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.RCB.No.Dir.BC.67/07.51.014/2013-14 dated December 02, 2013 is enclosed .
Yours faithfully,
(A. Udgata)
Principal Chief General Manager
RPCD.RCB.BC.Dir.No.67/07.51.014/2013-14
December 02, 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 (As Applicable to Co-operative Societies), and in modification of the directive RPCD.RCB. BC.Dir.No.25/07.51.014/2013-14 dated August 22, 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/2013-14/394 · 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=8613&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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