What changed
RBI issued a new master circular updating and consolidating all previous instructions on interest rates for rupee deposits held in Domestic, Ordinary Non-Resident (NRO), and Non-Resident (External) (NRE) accounts. This supersedes the July 2, 2012 master circular and incorporates guidelines issued up to June 30, 2013.
What it means for you
Banks must now refer to this single consolidated document for all regulatory requirements on deposit interest rates, ensuring compliance with the latest RBI directives. The circular covers key areas like minimum tenor, savings and term deposit rates, premature withdrawal rules, and special provisions for senior citizens and staff deposits.
What you must do
- Review and update internal policies to align with the consolidated master circular.
- Ensure all deposit products comply with the specified interest rate guidelines and prohibitions.
- Train staff on the updated rules for NRO and NRE accounts, including interest rate regulations.
- Maintain records of deposit interest rates and notify RBI of any changes as required.
Who it affects
All scheduled commercial banks (excluding RRBs), Treasury and deposit operations teams, Compliance and risk management departments, Branch managers handling NRO and NRE accounts
Does this circular change the interest rate on savings accounts?
No, the circular consolidates existing guidelines; savings account interest rates remain as per previous RBI directives.
Are Regional Rural Banks covered under this circular?
No, the circular explicitly excludes Regional Rural Banks (RRBs) from its application.
What is the effective date of this master circular?
The circular is effective from July 1, 2013, and supersedes the earlier master circular dated July 2, 2012.