Question
What is the new ceiling for FCNR(B) deposit rates set by
the RBI for the 1-3 years maturity period?Solution
The RBI has raised the interest rate ceiling for FCNR(B) deposits to ARR + 400 basis points (bps) for the 1-3 years maturity period, with the new rules valid until March 31, 2025. This is part of the RBI's strategy to attract capital inflows.
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