Guidelines for calculation and payment of interest for the overdue period on
FCNR (B)/RFC Term Deposits are as mentioned below:-
| Overdue period
(from the date
of maturity till
the date of
renewal, both
days inclusive)
|
FCNR (B) Deposit |
RFC Term Deposit |
| Not exceeding
14 days
|
1. Overdue deposit or a portion
thereof can be renewed from
the date of maturity.
2. The rate of interest payable on
the amount of the deposit so
renewed shall be the
appropriate rate of interest for
the period of renewal as
prevailing on the date of
maturity or on the date of
renewal, whichever is lower.
|
1. Overdue RFC Term Deposit can
be renewed from the date of
maturity at the interest rate
prevailing on the date of
maturity, provided the deposit is
renewed to fall due after a
period of not less than one
month from the date of renewal.
2. In case of renewal of individual
RFC Term Deposits of value USD
250,000 and above or equivalent
in other currencies, minimum
period of renewal can be one
week beyond date of renewal.
3. Wherever the depositor opts to
renew the deposit from the date
of presentation to take
advantage of enhanced interest
rate prevailing on the date of
presentation, same can be
acceded to without payment of
interest for the overdue period.
|
| More than 14
days
|
Simple interest at par with RFC SB rate for the respective currency
prevailing on the date of renewal or the contracted rate of interest on the
matured TD, whichever is lower.
|
In case a foreign currency denominated deposit with a fixed maturity date remains
inoperative for a period of three years from the date of maturity of the deposit, at
the end of the third year, the bank shall convert the balances lying in the foreign
currency denominated deposit into Indian Rupee at the exchange rate prevailing as
on that date. Thereafter, the depositor shall be entitled to claim either the said
Indian Rupee proceeds and interest thereon, if any, or the foreign currency
equivalent (calculated at the rate prevalent as on the date of payment) of the
Indian Rupee proceeds of the original deposit and interest, if any, on such Indian
Rupee proceeds.
If customer submits request for placement of such INR proceeds in term deposit,
guidelines for payment of simple interest for overdue period of FCNR (B)/RFC
deposit for the pre crystallization period of 3 years from the date of maturity are
as follows:-
- If the depositor is NRI on the date of renewal – Rate of Interest shall be simple
interest at par with RFC SB rate for the respective currency prevailing on the
date of renewal or the contracted rate of interest on the matured TD,
whichever is lower.
- If the depositor is resident on the date of renewal – Rate of Interest shall be
RFC SB rate prevailing on the date of maturity or on the date of renewal,
whichever is lower.
- In cases where FCY deposits are crystallized, customer is entitled for the simple
interest at ongoing SB rate on the INR component for the post crystallization
period irrespective of the fact whether customer opts for renewal or
withdrawal.
Important Points
- In cases where deposit is overdue for more than 14 days, renewal from date of
maturity is not permitted. If customer requests the Bank for renewal of such
overdue deposit, the same shall be acceded to by treating it as a fresh term
deposit at the interest rate prevailing on the date of renewal for the period of
fresh term deposit.
- In case where deposit is not renewed for minimum maturity period, no interest
for the overdue period for which it remained in FCY shall be paid.
- In case, where only a portion of the overdue deposit is renewed, interest for
the overdue period shall be paid on the amount so placed.
- If, after renewal, the deposit is withdrawn before completion of the minimum
stipulated period, interest paid for the overdue period i.e. period beyond the
original date of maturity of earlier deposit shall be recovered.
- In case where deposit is crystallized, for determining interest rate for overdue
period (pre-crystallization), customer’s residential status as on the date of
renewal shall be reckoned.
1800 1030
