Mumbai, Sept 16: The Reserve Bank of India (RBI) on Monday lowered the ceiling on the interest rate on non-resident external (NRE) deposits to 100 basis points above Libor from 250 basis points earlier. It said in a statement that the new rate would go into effect from September 15.
"The interest rates on fresh repatriable NRE deposits for one to three years...should not exceed 100 basis points above the Libor/swap rates for US dollar of corresponding maturity," the RBI said in a statement. Bureau Report