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Whether banks are permitted to offer differential rate of interest on NRE / FCNR(B) deposits?

April 26, 2017Banks deposits Differential FCNR NRE Offer permitted rate

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Whether banks are permitted to offer differential rate of interest on NRE / FCNR(B) deposits?

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Yes. Banks are permitted to offer differential rates of interest on NRE term deposits as in the case of domestic term deposits of Rs. 15 lakh and above. Regarding FCNR(B) deposits, banks are now free to decide the currency wise minimum quantum on which differential rate of interest may be offered subject to the overall ceiling prescribed.