RBI hikes FCNR (B) deposit rates by 25bps

The Reserve Bank of India (RBI) has decided that the interest rate ceiling with respect to FCNR(B) deposits be increased by 25 basis points.

According to an official release on the website of RBI, the interest rates on FCNR(B) deposits of all maturities contracted effective close of business in India on March 28, 2006 should not exceed LIBOR/ SWAP rate (as against 25 basis points below the LIBOR/SWAP rate effective April 29, 2002) until further notice.