Home › Circulars › RBI/2013-14/483

FCNR(B) Deposit Rate Ceiling Extended to Feb 28, 2014

Current · Source: Reserve Bank of India · RBI/2013-14/483 · issued 07 Feb 2014 · ~2 min read
Quick answerRBI extends the temporary FCNR(B) deposit rate ceiling (LIBOR/Swap + 200 bps for 1-3 years, +400 bps for 3-5 years) until Feb 28, 2014. From Mar 1, 2014, the 3-5 year ceiling drops to +300 bps. Banks get extra time to adjust.
The rule, in the simplest words
How it plays out — a real example

Ramesh, the treasurer at a UCB, sees the circular and updates his deposit rate sheet. He notes that he can still offer 3-year FCNR(B) deposits at LIBOR+400 bps until Feb 28, but from March 1 he must cap at LIBOR+300 bps. He informs his branch managers to price new 3-year deposits accordingly.

What changed

The interest rate ceiling on FCNR(B) deposits, originally set in August 2013 and extended to January 31, 2014, is now extended again to February 28, 2014. For the 3-5 year maturity bucket, the ceiling will revert to LIBOR/Swap plus 300 basis points from March 1, 2014, down from the current 400 basis points. The 1-3 year bucket remains unchanged at LIBOR/Swap plus 200 basis points.

What it means for you

Banks have one more month to offer the higher 3-5 year FCNR(B) rates, which can help attract foreign currency deposits. From March 1, the reduced ceiling will lower the cost of such deposits for banks, but may make them less attractive to depositors. Banks should plan their deposit pricing and asset-liability management accordingly.

What you must do

Who it affects

All AD Category-1 Urban Co-operative Banks (UCBs), Treasury departments, Deposit pricing teams, Foreign currency deposit customers

❓ Common questions

What is the FCNR(B) deposit rate ceiling for 1-3 years?

The ceiling remains at LIBOR/Swap plus 200 basis points, unchanged from the August 2013 circular.

When does the 3-5 year ceiling change?

From March 1, 2014, the ceiling for 3-5 year FCNR(B) deposits will be reduced from LIBOR/Swap plus 400 basis points to LIBOR/Swap plus 300 basis points.

Is this extension applicable to all UCBs?

Yes, the circular is addressed to all AD Category-1 Urban Co-operative Banks.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 84 kb ) Interest Rates on FCNR(B) Deposits RBI/2013-14/483 UBD.BPD.AD.Cir.No.7/13.01.000/2013-14 February 7, 2014 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 prescribing interest rate ceilings on FCNR (B) deposits for maturity period of one year to less than three years and three to five years, respectively. These instructions were valid upto November 30, 2013. Further, in terms of para 2 of our circular UBD.BPD.AD. Cir 5/13.01.000/2013-14 dated December 02, 2013 , the validity of these instructions were extended to January 31, 2014, subject to review. 2. On a review and in order to give banks some time, it has been decided that the interest rate ceiling on FCNR (B) deposits prescribed vide circular dated August 21, 2013, referred to above, will continue till February 28, 2014 and will revert to the ceiling prior to August 14, 2013, as under : Maturity Period Existing With effect from March 1, 2014 1 year to less than 3 years LIBOR / Swap plus 200 basis points No change 3 - 5 years LIBOR / Swap plus 400 basis points LIBOR / SWAP plus 300 basis points 3. All other instructions in this regard, as amended from time to time, will remain unchanged. Yours faithfully (A.K.Bera) Principal Chief General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/483 · issued 07 Feb 2014. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Communicate the rate change to treasury and branch staff handling FCNR(B) deposits.
💻 IT / Systems
  • Update FCNR(B) deposit pricing systems to reflect the extended ceiling until Feb 28, 2014.
📜 Compliance
  • Prepare for the reduced 3-5 year ceiling (LIBOR/Swap +300 bps) effective March 1, 2014.
  • Review existing FCNR(B) deposit pipeline to ensure compliance with the new ceiling from March 1.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (All AD Category-1 Urban Co-operative Banks (UCBs), Treasury departments, Deposit pricing teams, Foreign currency deposit customers), your first concrete step on “FCNR(B) Deposit Rate Ceiling Extended to Feb 28, 2014” is: “Update FCNR(B) deposit pricing systems to reflect the extended ceiling until Feb 28, 2014.” (RBI issued this 07 Feb 2014).

  1. Circular: RBI/2013-14/483 -- FCNR(B) Deposit Rate Ceiling Extended to Feb 28, 2014
  2. Issued: 07 Feb 2014
  3. Action required: Update FCNR(B) deposit pricing systems to reflect the extended ceiling until Feb 28, 2014.
  4. Action required: Prepare for the reduced 3-5 year ceiling (LIBOR/Swap +300 bps) effective March 1, 2014.
  5. Action required: Communicate the rate change to treasury and branch staff handling FCNR(B) deposits.
  6. Action required: Review existing FCNR(B) deposit pipeline to ensure compliance with the new ceiling from March 1.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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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=8735&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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