NRE Deposit Rate Deregulation Extended Till Feb 28, 2014
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/484 · issued 07 Feb 2014 · ~2 min read
Quick answerRBI extends freedom to set NRE deposit rates without ceiling for 3-year+ tenors until Feb 28, 2014. From March 1, 2014, rates must revert to domestic deposit benchmarks. This gives urban co-operative banks more time to adjust pricing strategies.
What changed
The earlier dispensation allowing banks to offer uncapped interest rates on incremental NRE deposits with maturity of 3 years and above, initially valid till November 30, 2013 and later extended to January 31, 2014, has been further extended to February 28, 2014. From March 1, 2014, the interest rate ceiling will revert to the pre-August 30, 2013 position, meaning NRE deposit rates cannot exceed comparable domestic rupee deposit rates.
What it means for you
Urban co-operative banks get an additional month to offer higher NRE deposit rates to attract non-resident rupee deposits without CRR/SLR cost. Post-February 28, the pricing flexibility ends, and banks must align NRE rates with domestic rates, potentially reducing their appeal. Banks should use this window to lock in NRE deposits or adjust liability 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
Review NRE deposit pricing strategies to maximize inflows before March 1, 2014 deadline.
Communicate the rate change timeline to branch heads and NRE relationship managers.
Prepare for post-Feb 28 reversion: ensure systems cap NRE rates at domestic deposit benchmarks.
Assess impact on NRE deposit book and liquidity position from March 1 onwards.
Who it affects
Primary (Urban) Co-operative Banks, NRE deposit customers, Treasury and ALM teams of urban co-operative banks
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 10:50 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?
RBI extends the freedom to offer uncapped interest rates on incremental NRE deposits of 3 years and above until February 28, 2014. From March 1, 2014, rates must not exceed comparable domestic rupee deposit rates.
Why did RBI extend this dispensation?
To give banks more time to adjust to the earlier deregulation and continue benefiting from CRR/SLR exemption on these deposits, which allows them to offer higher rates without reserve costs.
What happens after February 28, 2014?
The interest rate ceiling on NRE deposits will revert to pre-August 30, 2013 norms, meaning rates cannot be higher than those on comparable domestic rupee deposits.
📜 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 #944: UBD.BPD.(PCB).Cir.No.47/13.01.000/2013-14 — "Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits" dated February 7, 2014”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/484
UBD.BPD.(PCB).Cir.No.47/13.01.000/2013-14
February 7, 2014
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. These instructions were valid upto November 30, 2013. Further in terms of para 2 of our circular UBD.BPD.(PCB).40/13.01.000/2013-14 dated December 2, 2013 the validity of these instructions were extended up to January 31,2014, subject to review.
2. On a review and in order to give banks some time, it has been decided to extend the above dispensation till February 28, 2014. With effect from March 1, 2014, the interest rate ceiling will revert to the position prior to August 30, 2013, i.e. interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits.
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
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/484 · issued 07 Feb 2014. 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=8736&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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