Reserve Bank of India has lowered the ceiling on deposit rates of non-banking finance companies to 12.5 per cent from 14 per cent per annum with effect from Thursday, taking into account market conditions and changes in other interest rates in the system. The new ceiling of 12.5 per cent per annum on interest rate has also been extended to miscellaneous non-banking companies (chit fund companies) and Nidhi companies as applicable to the deposits accepted by them as per directions prescribed by RBI, the apex bank said in a release in Mumbai on Wednesday. Other stipulations regarding the interest rate remain unchanged, it said.
The new rates would be applicable only to fresh deposits and renewal of existing deposits on and from Thursday by the NBFCS, the apex bank added.
Bureau Report