More Clarifications After The Declassification Of Ocbs

The Reserve Bank of India (RBI) gave further clarifications on the current status in regard to the facilities for investment in India by non-resident Indians (NRIs), following the derecognition of OCBs as an investor class.

The facilities include : (i) bank accounts and deposits, (ii) other investments on repatriation basis, (iii) other investments on non-repatriation basis, (iv) immovable property and (v) facilities to returning NRIs/ persons of Indian origin (PIOs).

On NRE Savings Accounts interest is paid at par with domestic deposits (3.5 per cent). On NRE term deposits, fixed or floating rates of interest are payable within the ceiling rate announced by RBI from time to time. At present the rate is US dollar Libor/swap rates of corresponding term plus 100 basis points.

FCNR(B) term deposit can be placed with authorised dealers in India in 4 specific foreign currencies.

Rate of interest payable