NRE Deposit Rate Deregulation Extended for UCBs

RBI/2013-14/395 UBD.BPD.(PCB).Cir.No.40 /13.01.000/2013-14 December 2, 2013 The Chief Executive Officers All Primary (Urban) Co-operative Banks Dear Sir/Madam, Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits Please refer to our circular UBD.BPD.(PCB) CIR.No. 8/13.01.000/2013-14 dated September 3, 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 were 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 UBD.BPD.Dir.No 4/13.01.000/2013-14 dated December 2, 2013 is enclosed . Yours faithfully, (A.K.Bera) Principal Chief General Manager UBD.BPD.Dir.No 4/13.01.000/2013-14 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 UBD.BPD.DIR.No.3/13.03.000/2013-14 dated August 30, 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. Yours faithfully (S.Karuppasamy) Executive Director

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/395 · issued 02 Dec 2013. The plain-English explanation above is BankPulse’s own independent summary.

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