Deregulation of Interest Rates on Non Resident (External) Rupee (NRE) Deposits

It has been decided to extend the freedom allowed to banks to offer interest rates on incremental NRE deposits with maturity of 3 years and above without any ceiling till February 28, 2014. With effect from March 1, 2014, the interest rate ceiling will revert to the position prior to August 14, 2013, i.e. interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits.