No bank should:
• Accept or renew deposits over five years.
• Discriminate in the matter of interest paid on the deposits between one deposit and
another accepted on the same date and for the same maturity.
• Permission to offer varying rates is based on the size of deposits subject to conditions
– Banks must determine currency wise minimum quantum on which differential rates of
interest can be offered.
– The differential rate must be within overall ceiling
– The rates should not be subject to negotiation.
– No brokerage or commission should be paid on these.
– No person/ agency should be employed to collect these deposits on payment of
commission or fees.
Overseas Corporate Bodies (OCB)
• OCBs shall not maintain NRE Accounts, FCNR (B) accounts and NRO Deposit
accounts with authorized dealers in India.
• All existing NRE accounts of OCBs are to be closed and balances repatriated.
• NRE Deposits (Recurring or fixed), FCNR (B) accounts and NRO deposits (recurring or
fixed) may be permitted to continue till the original maturity.
• The maturity proceeds of NRE deposits and FCNR (B) accounts should be repatriated
• No new NRE/ FCNR (B) / NRO accounts in the names of OCBs are to be opened nor
are deposits to be renewed.
• The approving authority of the overseas contract i.e. Authorized Dealers / EXIM Bank/
Working group to permit project / service exporters are permitted to open, hold and
maintain foreign currency account in India.
• Earlier project / service exporters were required to approach RBI for permission to open
such accounts in India.
Project offices set up by foreign companies
• Foreign currency accounts may be opened for project offices approved by RBI.
• Debits permitted are for payment related expenditure.
• Credits should be for foreign currency receipts from the project sanctioning authority
and remittance from parent/ group company abroad.