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RBI clarifies on NRI deposits

BS Bureau | October 31, 2003 09:14 IST

In supersession of its earlier instructions, Reserve Bank of India on Thursday clarified that the non banking financial companies can accept repatriable deposits from non-resident (external) rupee deposit accounts.

Other instructions on acceptance of deposits from non-resident Indians relating to rate of interest and minimum and maximum period remain unchanged, the apex bank said in a release.

At present, the rate of interest payable on NRI deposits accepted on repatriable basis should not exceed 25 basis points above Libor\Swap rates for US dollar of the corresponding maturity as in case of scheduled commercial banks, the RBI said.

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