Interest Rate Recast For Fcnr Deposits

The changes have been announced in the interest rates for one year and two year maturities in Deutsche mark (DM) and for one year maturity in Japanese yen (JPY) deposits under the FCNR (B) scheme.

New interest rates effective from September 9, 1996, for the DM will be 3.75 per cent for deposits with a one year and above maturity, but lesser than two years. At present, the rate stands at four per cent.

For DM deposits, for two years and above but less than three years the interest rates have moved down from 4.75 per cent to 4.50 per cent. For three year maturity and the rates remain pegged at five per cent.

 

For six months and above but less than one year also there has been no change. The rates remain at three per cent, for six month and above but less than one year deposits.

In the JPY deposits, the interest rates on deposits for one year and above but less than two years, the rates have been revised downwards from 1.25 per cent to 1 per cent. For the other period of deposits there has been no change. This implies, that the deposits for six months and above but less than one year the rates stand at 0.75 per cent.

For deposits having a maturity of two years and above but less than three years, the rates will continue to remain pegged at 1.5 per cent and for three year deposits at two per cent.