look news india
Mumbai: In an effort to attract more funds from non-resident Indians (NRIs), the Reserve Bank has announced an increase in the interest rate limit on foreign currency deposits of NRIs.
To reduce pressure on the rupee due to increased foreign capital inflows, it has been decided to increase the interest limit on Foreign Currency Non-Resident Bank Deposits or FCNR (B) deposits. The interest rate limit has been increased at a time when the rupee is at an all-time low against the dollar.
As per the decision of the Reserve Bank, banks have not been permitted to increase the overnight alternative reference rate by more than 400 basis points on new FCNR (B) deposits with tenors of 1 to 3 years. Which was earlier 250 basis points.
Reserve Bank Governor Shaktikanta Das said, thus this rate on deposits for a period of 3 to 5 years has been increased by 500 basis points in addition to the alternative reference rate. This discount will be available only till March 31 next year.