RBI revises interest rate ceiling of FCNR(B) deposits

Mumbai, Mar 28 (UNI) Reserve Bank of India (RBI) has announced an upward revision by 25 basis points in the interest rate ceiling with respect to foreign currency non-resident(bank) deposits of all maturities contracted effective from the close of business hours today.

In a circular, RBI said, the interest rates on FCNR(B) deposits should not exceed LIBOR or SWAP rate prevailing on the last working day of the previous week for relevant maturity and currency.

This was against 25 basis points below the Libor or Swap rate effective from April 29, 2002.

RBI which reviewed the rates in a meeting with the bankers this morning, felt that there was a need to increase the interest rate ceiling with immediate effect in order to attract more deposits from the non-resident indians (NRIs) in the banking industry.

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