DBOD No. Dir.BC. 52/13.03.00/2004/05

November 1, 2004

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and in modification of the Master Circular DBOD No.Dir.BC.9/13.03.00/2004-05 dated July 16, 2004, as amended from time to time, on interest rates on deposits, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that item (iii) (a) of the Annexure II relating to the interest rates on NRE deposits shall be substituted by the following :

2. The interest rates on Non-Resident (External) Rupee (NRE) Deposits for one to three years maturity contracted with effect from November 1, 2004 shall not exceed the LIBOR/ SWAP rates of the last working day pf the previous month for US dollar of corresponding maturities plus 50 basis points. The interest rate as determined above shall also be applicable in case the maturity period exceeds three years. The above changes in interest rates will also apply to NRE term deposits renewed after their present maturity period.