Home › Circulars › RBI/2013-14/396

FCNR(B) Deposit Rate Ceiling Extended to Jan 31, 2014

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/396 · issued 02 Dec 2013 · ~1 min read
Quick answerRBI extends the existing interest rate ceiling on FCNR(B) deposits for AD Category-1 UCBs until January 31, 2014, without any change. The earlier deadline of November 30, 2013, is now superseded.

What changed

The previous circular (August 21, 2013) set interest rate ceilings on FCNR(B) deposits valid until November 30, 2013. This new circular extends that same ceiling unchanged until January 31, 2014, subject to further review.

What it means for you

UCBs can continue offering FCNR(B) deposits at the existing capped rates for two more months, providing stability for their foreign currency deposit pricing. No new rate adjustments are permitted during this period, so lenders must maintain current offerings without raising rates to attract 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

Who it affects

All AD Category-1 Urban Co-operative Banks, Treasury departments of UCBs, Deposit operations teams handling FCNR(B) accounts

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this circular change the actual interest rate ceiling on FCNR(B) deposits?

No, the ceiling remains exactly as prescribed in the August 21, 2013 circular. Only the validity period is extended to January 31, 2014.

Which UCBs are covered by this directive?

Only AD Category-1 Urban Co-operative Banks are covered, as the circular is addressed to their Chief Executive Officers.

What happens after January 31, 2014?

The ceiling is subject to review by RBI. Banks should watch for further circulars before that date for any changes.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #981: UBD.BPD.AD.Cir.No.5/13.01.000/2013-14 — "Interest Rates on FCNR(B) Deposits" dated December 2, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/396 UBD.BPD.AD.Cir.No. 5/13.01.000/2013-14 December 2, 2013 The Chief Executive Officers All AD Category -1 UCBs Dear Sir/Madam, Interest Rates on FCNR(B) Deposits Please refer to our circular UBD.BPD.AD.Cir.No 2/13.01.000/2013-14 dated August 21, 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 were 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 UBD.BPD.DIR.No 5 /13.01.000/2013-14 dated December 2, 2013 is enclosed . Yours faithfully, ( A.K.Bera ) Principal Chief General Manager UBD.BPD.Dir.No. 5/13.01.000/2013-14 December 2, 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 UBD.BPD.Dir.No.1/13.01.000/2013-14 dated August 21, 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. Yours faithfully (S.Karuppasamy) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/396 · issued 02 Dec 2013. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamProduct Manager (Digital & Lending)Branch Manager — PSU / Co-op / RRB (sanctioning powers)Branch Operations (Accounts / FD / CASA)Internal Audit
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
Browse all departments →

💬 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.

Loading comments…
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=8615&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—