|
|
 |
|
|
EXCHANGE POLICY DEPARTMENT - 2007 |
|
|
| EPD Circular Letter No. / 10 |
May 21, 2007 |
|
|
| Rate of Return on Foreign Currency Deposits Raised Under FE-25 of 1998 |
|
|
|
|
|
|
Attention of Authorized Dealers is invited to Paragraph 6(ii), Chapter VI, FEM-2002, in terms of which Authorized Dealers are free to decide the rate of return offered on such FE-25 deposits provided the maximum rate of return does not exceed LIBOR applicable on the date of determination of such return/profit.
|
|
|
It is clarified that in terms of Prudential Regulation for Corporate/Commercial Banking No. O-5, banks have been allowed to freely decide the rate of return on deposits mobilized under FE-25 without placing any cap. Accordingly, the Paragraph 6(ii), Chapter VI, FEM-2002 may be read amended as below:
|
|
|
"(ii) Authorized Dealers are free to decide the rate of return offered on such deposits"
|
|
 |
|
|
|
|
|
 |
|
|
|
|
|
|
|
|
|
|
| TV COMMERCIALS |
 |
|
