RBI HIKES NRE, FCNR (B) RATES

The Reserve Bank of India (RBI) has issued fresh guidelines in connection with interest rates on non resident (external) rupee (NRE) term deposits and FCNR (B) deposits. As per the guidelines, the interest rates on fresh NRE term deposits for one to three years maturity should not exceed the
libor/swap rates plus 100 basis points as on the last working day of the previous month, for US dollar of corresponding maturities as against libor/swap rates plus 50 basis points effective from the close of business.