July 26, 2005

All Commercial Banks
(excluding RRBs)

Dear Sir,

Please refer to our Master Circular relating to deposits held in FCNR(B) Accounts DBOD.No.Dir.6/13.03.00/2005-06 dated July 1, 2005.

2. On a review of the recommendations made by the Technical Committee on Forex markets and feed back received so far, it has been decided as follows:

(a) to allow banks to accept FCNR (B) deposits denominated in Canadian dollars and Australian dollars in addition to the existing four currencies viz., US dollars, Pound Sterling, Euro and Yen and

(b) to allow banks to accept FCNR (B) deposits upto a maximum maturity period of five years.

3. All other terms and conditions applicable to the FCNR(B) deposit scheme would remain unchanged.

Yours faithfully,

(Anand Sinha)
Chief General Manager-in-Charge

PRESS RELEASE