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RBI raises interest rates on longer-term non-resident accounts

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Reuters MUMBAI
Last Updated : Aug 14 2013 | 9:27 PM IST

MUMBAI (Reuters) - The Reserve Bank of India said it raised interest rates on Wednesday on longer-term deposits accounts held by non-residents.

On foreign currency non-resident bank (FCNRB) accounts with maturities of 3-5 years, the central bank said it raised the interest rate ceiling to LIBOR plus 400 basis points from LIBOR plus 300.

The RBI removed the ceiling on interest rates on non-resident external rupee deposits with maturities of three years and above.

Earlier in the day, the RBI exempted those deposits from cash reserve ratio and statutory liquidity ratio requirements.

(Reporting by Shamik Paul; Editing by John Stonestreet)

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First Published: Aug 14 2013 | 9:14 PM IST

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