Interest Rate on Deposits Under NRE Savings Bank Accounts
At present, interest rate on NRE Savings Bank Deposits is linked to domestic
savings bank deposit rate. With a view to aligning the interest rates on
various categories of NRE deposits, RBI has decided to link interest rate on
NRE Savings Bank deposits to LIBOR/SWAP rates for US Dollar. Accordingly,
interest on NRE Savings Bank deposit for quarter April - June 2004 has been
revised as under:
Interest on NRE Savings Bank Deposit for the quarter April - June 2004
Existing Rate - 3.5% Revised Rate 1.16%
2. RBI has also clarified that since the account holder of NRE Savings deposits
can withdraw savings deposits at any time, banks should not make any type of
lien, direct or indirect against these deposits.
(Source : LHO, Kolkata OL No 24 dated 30-April-2004)
In Branches, where NRE Savings Banks Accounts are maintained will have to note
the above changes and accordingly change the Interest Base Rate for NRE Savings
Bank Account to 1.16% (from Existing Rate - 3.5%).
The Base Rate Code for NRE Savings Bank Account in Bankmaster is 97.
Title: State Bank of India, Staff Training Centre, Salt Lake, Kolkata. : :
stcsaltlake@xxxxxxxx : :
At present, interest rate on NRE Savings
Bank Deposits is linked to domestic savings bank deposit rate. With a view to
aligning the interest rates on various categories of NRE deposits, RBI has
decided to link interest rate on NRE Savings Bank deposits to LIBOR/SWAP rates
for US Dollar. Accordingly, interest on NRE Savings Bank deposit for quarter
April - June 2004 has been revised as under: Interest
on NRE Savings Bank Deposit for the quarter April - June 2004 Existing Rate - 3.5% Revised Rate 1.16% 2. RBI has also clarified that since the
account holder of NRE Savings deposits can withdraw savings deposits at any
time, banks should not make any type of lien, direct or indirect against these
deposits. (Source : LHO, Kolkata OL No 24 dated
30-April-2004) In Branches, where NRE Savings Banks
Accounts are maintained will have to note the above changes and accordingly
change the Interest Base Rate for NRE Savings Bank Account to 1.16% (from
Existing Rate ? 3.5%). The Base Rate
Code for NRE Savings Bank Account in Bankmaster is 97. |
