INTEREST RATE ON NONRESIDENT (EXTERNAL) RUPEE DEPOSITS REDUCED

The interest rates on fresh Non-Resident (External) Rupee (NRE) Term deposits for one to three years’ maturity should not exceed the LIBOR/SWAP rates, as on the last working day of the previous month, for US dollar of corresponding maturity plus 50 basis points (as against LIBOR / SWAP rates plus 100 basis points effective from close of business on April 18, 2006). The interest rates as determined above for three year deposits will also be applicable in case the maturity period exceeds three years. The changes in interest rates will also apply to NRE deposits renewed after their present maturity period.