Ref No. DBOD.Dir.BC. 12/13.03.00/2002-03, Dt. 31/07/2002

Master Circular on Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) (NRE) Accounts

All Commercial Banks
(Excluding Regional Rural Banks and Local Area Banks)

Dear Sirs,

As you are aware Reserve Bank of India has issued Master Directive on Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) (NRE) Accounts vide DBOD No. Dir.BC. 07/13.03.00/2001-02 dated August 11, 2001. Certain amendments have also been made thereto from time to time. In order to enable the banks to have all existing instructions on the subject at one place a Master Circular has been prepared by incorporating the instructions issued upto 30 June 2002 and has been placed on the RBI website (http://www.rbi.org.in).

2. It may be noted that the instructions contained in the directives/circulars listed in Annexure VI have been incorporated in the Master Circular.

Yours faithfully,

(M.R. Srinivasan)
Chief General Manager-in-Charge

Master Circular on Interest Rates on Rupee Deposits held
in Domestic, Ordinary Non-Resident (NRO) and
Non-Resident (External) (NRE) Accounts

Commercial banks should not pay interest on deposits of money accepted by it or renewed by it in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) Accounts (NRE) except in accordance with the rates as specified in the Annexures I and II hereto, whichever is applicable, and on the terms and conditions specified in the paragraphs below:

1. Definitions

For the purpose of this circular,

(a) "Demand liabilities" and "Time liabilities" means the liabilities as shown in the return submitted by the bank under sub-section (2) of Section 42 of the Reserve Bank of India Act, 1934;

(b) "Demand deposit" means a deposit received by the bank which is withdrawable on demand;

(c) "Savings deposit" means a form of demand deposit which is a deposit account whether designated as "Savings Account", "Savings Bank Account", "Savings Deposit Account" or other account by whatever name called which is subject to the restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the bank during any specified period;

(d) "Term deposit" means a deposit received by the bank for a fixed period and which is withdrawable only after the expiry of the said fixed period and shall also include deposits such as Recurring/Cumulative/ Annuity/Reinvestment deposits, Cash Certificates, and so on;

(e) "Notice deposit" means term deposit for specific period but withdrawable on giving at least one complete banking day’s notice;

(f) "Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or upto a particular agreed amount and shall also be deemed to include other deposit accounts which are neither Savings Deposit nor Term Deposit;

(g) "Countervailing interest" means any benefit of interest allowed on any account in the nature of current account maintained with the bank by its borrower;

(h) "Budgetary allocation" means the allocation of funds by the Government made through the budget, wherein all the Government’s expenditure is reflected. Any institution, irrespective of the fact that it is a Government Department, Semi-Government or Quasi-Government Body, which receives grants, loans or subsidies from the Government is said to depend on budgetary allocation. Government grants to institutions are also in the nature of the budgetary allocation. Government’s subscription to the share capital of these institutions also forms part of the budgetary allocation. Local bodies like Municipal Corporations, Zilla Parishads, Taluka Panchayats and Gram Panchayats are given grants in the nature of ‘compensation and assignments’, which also form part of budgetary allocation, although taxes collected by these bodies are not covered under the definition and scope of budgetary allocation of Central and State Governments;

(i) "Public Sector Bank" means the State Bank of India constituted under the State Bank of India Act, 1955 or any subsidiary bank as defined in clause (k) of Section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 or any corresponding new bank as defined in clause (b) of Section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 or Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

Note: NRO/NRE deposits can be accepted only by banks, which are authorised by Reserve Bank to accept such deposits.

2. Rates of interest payable on Savings deposits and on term deposits of not less than 15 days (7 days in the case of term deposits of Rs. 15 lakh and above and 6 months in the case of NRE deposits)

(i) Bank should pay interest on savings deposits and term deposits at the rates specified in the Annexures I & II to this circular. On Domestic Term Deposits a bank may offer floating rate clearly linked to an anchor rate. A bank must obtain prior approval of its Board/Asset Liability Management Committee (if powers are delegated by the Board) for fixing interest rates of various maturities.

(ii) Such interest should be paid at quarterly or longer rests.

(iii) In the case of savings deposits, interest should be calculated on the minimum balance to the credit of the deposit account during the period from the 10th to the last day of each calendar month and credited to the account only when it is Re.1/- or more.

3. Additional interest to Army Group Insurance Directorate (AGID) Naval Group Insurance Fund (NGIF) and Air-Force Group Insurance Society (AFGIS)

A Public Sector Bank is permitted to pay additional interest of 1.28 per cent per annum over and above the normal rate of interest permissible in terms of directives on interest rates on deposits issued by Reserve Bank of India, from time to time, on term deposits for 2 years and above of Army Group Insurance Directorate (AGID), Naval Group Insurance Fund (NGIF) and Air-Force Group Insurance Society (AFGIS) only, provided such deposits are not in any way linked with payment of insurance premia by the bank.

4. Discretion to Regional Rural Bank/Local Area Bank to pay additional interest

A Regional Rural Bank/Local Area Bank may, at its discretion, allow additional interest of half per cent per annum on savings deposits.

5. Discretion to pay additional interest not exceeding one per cent on deposits of bank’s staff and their exclusive associations

A bank may, at its discretion, allow additional interest at a rate not exceeding one per cent per annum over and above the rate of interest stipulated in the Annexures I & II to this circular subject to following conditions:

(1) in respect of a savings or a term deposit account opened in the name of:

a. a member or a retired member of the bank’s staff, either singly or jointly with any member or members of his/her family; or

b. the spouse of a deceased member or a deceased retired member of the bank’s staff; and

c. an Association or a fund, members of which are the members of the bank’s staff;

A bank should obtain a declaration from the depositor concerned, that the monies deposited or which may, from time to time, be deposited into such account belong to the depositor as stated in clauses (a) to (c) above.

(2) For the purposes of sub-paragraph (1) -

(i) "a member of the bank’s staff" means a person employed on a regular basis, whether full-time or part-time and includes a person recruited on probation or employed on a contract of a specified duration or on deputation and an employee taken over in pursuance of any scheme of amalgamation, but does not include a person employed on casual basis.

(a) In the case of employees taken on deputation from another bank, the bank from which they are deputed may allow additional interest in respect of the savings or term deposit account opened with it during the same period of deputation.

(b) In the case of persons taken on deputation for a fixed duration, or on a contract of a fixed duration, the benefit will cease to accrue on the expiry of the term of deputation or contract, as the case may be.

(ii) "a retired member of the bank’s staff" means an employee retiring whether on superannuation or otherwise as provided in bank’s Service/Staff Regulations, but does not include an employee retired compulsorily or in consequence of disciplinary action;

(iii) "family" means and includes the spouse of the member/retired member of the bank’s staff and the children, parents, brothers and sisters of the member/retired member of the bank’s staff, who are dependent on such member/retired member, but does not include legally separated spouse;

(3) Payment of additional interest will be subject to the following conditions, namely:

(i) The additional interest will be payable only so long as the person continues to be eligible for the same and in case of his ceasing to be so eligible, till the maturity of a term deposit account;

(ii) In the case of employees taken over pursuant to the scheme of amalgamation, the additional interest will be allowed only if the interest at the contractual rate together with the additional interest does not exceed the rate which could have been allowed if such employees were originally employed by the bank.

(4) Bank Employees’ Federations in which bank employees are not direct members will not be eligible for additional interest.

6. Discretion to pay additional interest not exceeding one per cent on deposits of Chairman and Managing Director and Executive Directors of the bank

A bank may, at its discretion, pay additional interest not exceeding one per cent per annum over and above the rate of interest stipulated in the Annexures I & II to this circular on deposits accepted/renewed from Chairman, Chairman & Managing Director, Executive Director or such other Executive appointed for a fixed tenure and are not eligible to get the similar benefit under paragraph 5 above, only during the period of their tenure.

7. Discretion to pay interest on current account maintained by Regional Rural Bank with sponsor bank

A bank may pay interest on current account of a Regional Rural Bank sponsored by it at such rates as may be mutually agreed to.

8. Discretion to pay interest on the minimum credit balance in the composite cash credit account of a farmer

A bank may, at its discretion, pay interest at a rate based on its perception and other relevant factors on the minimum credit balance in the composite cash credit account of a farmer during the period from the 10th to the last day of each calendar month.

9. Premature withdrawal of term deposit

i. A bank, on request from the depositor, should allow withdrawal of a term deposit before completion of the period of the deposit agreed upon at the time of making the deposit. The bank will have the freedom to determine its own penal interest rate of premature withdrawal of term deposits. The bank willl ensure that the depositors are made aware of the applicable penal rate along with the deposit rate. However, the bank, at its discretion, may disallow premature withdrawal of large deposits held by entities other than individuals and Hindu Undivided Families. Bank should, however, notify such depositors of its policy of disallowing premature withdrawal in advance, i.e., at the time of accepting such deposits.

ii. In the case of premature withdrawal of NRE term deposit for conversion into Resident Foreign Currency (RFC) Account, the bank should not levy any penalty for premature withdrawal. If such a deposit has not run for a minimum period of 6 months, the bank may, at its discretion, pay interest at a rate not exceeding the rate payable on savings deposits held in RFC accounts, provided request for such a conversion is made by NRE account holder immediately on return to India.

iii. Conversion of NRE deposit into FCNR(B) deposit and vice versa before maturity should be subject to the penal provision relating to premature withdrawal.

iv. Conversion of NRSR/NRNR deposit into NRO deposit before maturity will be subject to the penal provision relating to premature withdrawal.

v. In view of the discontinuance of NRNR/NRSR schemes with effect from April 1, 2002 the proceeds of NRNR deposits can be credited to NRE accounts on maturity but not to FCNR(B) account, while proceeds of NRSR account can be credited on maturity to NRO accounts only. In case of premature withdrawal of NRNR/NRSR deposits, the proceeds should be credited to NRO accounts only.
(cf. Circular BC. 93/13.01.09/2001-2002 dated April 29, 2002)

10. Conversion of a term deposit, a deposit in the form of daily deposit or a recurring deposit for reinvestment in term deposit

A bank, on a request from the depositor, should allow conversion of a term deposit, a deposit in the form of daily deposit or recurring deposit, to enable the depositor to immediately reinvest the amount lying in the aforesaid deposits with the same bank in another term deposit. The bank should pay interest in respect of such a term deposit in the manner indicated in paragraph 9 above without reducing the interest by way of penalty as stated in the said paragraph provided that the deposit remains with the bank after reinvestment for a period longer than the remaining period of the original contract.

11. Overdue deposits

(i) A bank may, at its discretion, renew an overdue deposit or a portion thereof provided the overdue period from the date of maturity till the date of renewal (both days inclusive) does not exceed 14 days. The rate of interest payable on the amount of the deposit so renewed should be the appropriate rate of interest for the period of renewal as prevailing on the date of maturity. In the case of overdue deposits where the overdue period exceeds 14 days and if the depositor places the entire amount of overdue deposit or a portion thereof as a fresh term deposit, the bank may fix its own interest rates for the overdue period on the amount so placed as a fresh deposit.

(ii) Non-Resident (External) Rupee Accounts

A bank may, at its discretion, renew an overdue deposit or a portion thereof provided the overdue period from the date of maturity till the date of renewal (both days inclusive) does not exceed 14 days. The rate of interest payable on the amount of the deposit so renewed should be the appropriate rate of interest for the period of renewal as prevailing on the date of maturity or on the date when the depositor seeks renewal, whichever is lower. In the case of overdue deposits where the overdue period exceeds 14 days and if the depositor places the entire amount of overdue deposit or a portion thereof as a fresh NRE term deposit, the bank may fix its own interest rates for the overdue period on the amount so placed as a fresh deposit. The bank is free to recover the interest so paid for the overdue period if the deposit is withdrawn before completion of minimum period prescribed under the scheme, after renewal.

12. Advance against term deposit - Manner of charging interest

(a) When an advance is granted against a term deposit and the deposit stands in the name of -

(i) the borrower, either singly or jointly;

(ii) one of the partners of a partnership firm and the advance is made to the said firm;

(iii) the proprietor of a proprietary concern and the advance is made to such a concern;

(iv) a ward whose guardian is competent to borrow on behalf of the ward and where the advance is made to the guardian of the ward in such a capacity;

the bank would be free to charge interest rate without reference to its Prime Lending Rate (PLR) including on advances granted against NRE term deposits and repaid in Foreign Currency or Rupees.

The term deposit against which an advance was granted is withdrawn before completion of the prescribed minimum maturity period, such an advance should not be treated as advance against the term deposit and interest should be charged as prescribed in terms of the Reserve Bank of India’s Directive on Interest Rates on Advances issued from time to time.

(b) When an advance is granted against a term deposit which is not in the nature of those at items (i) to (iv) in sub-clause (a) above a bank would be free to charge interest rate without reference to the Prime Lending Rate, provided the advance is upto Rs.2 lakh. However, if the advance exceeds Rs. 2 lakh, bank should charge interest at the rate prescribed in terms of Reserve Bank of India’s directive relating to interest rates on advances issued from time to time.

A bank, at its discretion, may not apply the rate of interest as stipulated at (a) above in the case of advances upto Rs.3 lakh granted to a member/retired member of the bank’s staff or the spouse of a deceased member/retired member of the bank’s staff against their term deposits specified in paragraph 5 above.

Note: Regional Rural Banks/Local Area Banks will have freedom to charge interest rates on advances granted against term deposits which are in the nature of those at items (i) to (iv) in sub-clause (a) above as also on advances upto Rs. 2 lakh against third party deposits, without reference to the ceiling of their normal lending rate. Interest chargeable on advance above Rs. 2 lakh shall not be less than normal lending rate which the bank charges on its best borrowal accounts.

13. Margin on advance against term deposit

A bank should maintain a reasonable margin on any financial accommodation allowed against the security of a term deposit. It may determine the margin on a case to case basis.

14. Interest payable on the deposit account of deceased depositor

(a) In the case of a term deposit standing in the name/s of

(1) a deceased individual depositor, or

(2) two or more joint depositors, where one of the depositor has died,

interest should be paid in the manner indicated below:

(i) at the contracted rate on the maturity of the deposit;

(ii) in the event of payment of the deposit being claimed before the maturity date, the bank should pay interest as provided in paragraph 9 above without charging the penalty indicated therein;

(iii) In the event of death of the depositor before the date of maturity of the deposit and the amount of the deposit is claimed after the date of maturity, the bank should pay interest at the contracted rate till the date of maturity. From the date of maturity to the date of payment, the bank should pay simple interest at the applicable rate operative on the date of maturity, for the period for which the deposit remained with the bank beyond the date of maturity.

However, in the case of death of the depositor after the date of maturity of the deposit, the bank should pay interest at savings deposit rate operative on the date of maturity from the date of maturity till the date of payment.

(iv) if on request from claimant/s the bank agrees to split the amount of term deposit and issues two or more receipts individually in the names of the claimant/s, it should not be construed as premature withdrawal of the term deposit for the purpose of paragraph 9 above. The period and aggregate amount of the deposit should not, however, undergo any change.

(b) In the case of balances lying in current account standing in the name of a deceased individual depositor/sole proprietorship concern, interest should be paid only from 1st May 1983 or from the date of death of the depositor, whichever is later, till the date of repayment to the claimant/s at the rate of interest applicable to savings deposit as on the date of payment.

Note: In the case of NRE deposit, when the claimants are residents, the deposit on maturity should be treated as domestic rupee deposit and interest be paid for the subsequent period at a rate applicable to the domestic deposit of a similar maturity.

15. Addition or deletion of the name/s of joint account holders

A bank may at the request of all the joint account holders allow the addition or deletion of name/s of joint account holder/s if the circumstances so warrant or allow an individual depositor to add the name of another person as a joint account holder. However, in no case should the amount or duration of the original deposit undergo a change in any manner in case the deposit is a term deposit.

A bank may, at its discretion, and at the request of all the joint account holders of a deposit receipt, allow the splitting up of the joint deposit, in the name of each of the joint account holders only, provided that the period and the aggregate amount of the deposit do not undergo any change.

Note: NRE deposit should be held jointly with a non-resident only.

16. Issue of stock-invest against term deposits

A bank may issue stock-invest against term deposit subject to guidelines issued by Reserve Bank of India from time to time.

17. Rounding off of transactions

All transactions including payment of interest on deposits/charging of interest on advances should be rounded off to the nearest rupee; i.e., fraction of 50 paise and above shall be rounded off to the next higher rupee and fraction of less than 50 paise shall be ignored. Issue prices of cash certificates should also be rounded off in the same manner. Cheques issued by clients containing fraction of a rupee should not be rejected or dishonoured.

18. Issue of term deposit receipt

A bank should issue term deposit receipt indicating therein full details, such as, date of issue, period of deposit, due date, applicable rate of interest, etc.

19. Payment of interest on term deposit maturing on Sunday/holiday/non-business working day

In respect of a term deposit maturing for payment on a Sunday or a holiday or a non-business working day, or Saturday in case of NRE deposits, bank should pay interest at the originally contracted rate on the deposit amount for the Sunday/holiday/non-business working day and also Saturday in case of NRE deposits, intervening between the date of the expiry of the specified term of the deposit and the date of payment of the proceeds of the deposit on the succeeding working day.

20. Deposit Mobilisation Schemes

Banks need not obtain prior concurrence of the Indian Banks’ Association or prior approval of the RBI for introduction of their new domestic deposit mobilisation schemes. However, before launching new domestic deposit mobilisation schemes with the approval of their respective Boards, banks should ensure that the provisions of RBI directives on interest rates on deposits, premature withdrawal of term deposits, sanction of loans/advances against term deposits, etc., issued from time to time, are strictly adhered to. Any violation in this regard will be viewed seriously and may attract penalty under the Banking Regulation Act, 1949.

21. Exemptions

The provisions in the above paragraphs will not apply to

i. a deposit received by the bank:


a. from the institutions permitted to participate in the Call/Notice/Term Money Market both as lenders and borrowers (Annexure III);

b. for which it has issued a participation certificate;

c. for a period not exceeding 14 days representing money at call or short notice from the institutions permitted to participate in Call/Notice Money Market only as lenders (Annexure IV);

d. under Foreign Currency (Non-Resident) Accounts (Banks) Scheme, Resident Foreign Currency Account and Exchange Earners Foreign Currency Accounts;

e. under the Capital Gains Accounts Scheme, 1988, framed by the Government of India in pursuance of sub-section (2) of Section 54, sub-section (2) of Section 54B, sub-section (2) of Section 54D, sub-section (4) of Section 54F and sub-section (2) of Section 54G of the Income-Tax Act, 1961; and

f. under the Certificate of Deposit Scheme.


(ii) payment of interest on delayed collection of outstation instruments like cheques, drafts, bills, telegraphic/mail transfers, etc.

22. Prohibitions

No bank should -

(a) pay interest on Current Account save as provided in paragraph 7 and 14(b) above;

(b) pay countervailing interest on any current accounts maintained with it by its borrowers;

(c) discriminate in the matter of interest paid on deposits, between one deposit and another, accepted on the same date and for the same maturity, whether such deposits are accepted at the same office or at different offices of the bank, except in respect of fixed deposit schemes specifically for resident Indian senior citizens offering higher and fixed rates of interest as compared to normal deposits of any size and single term deposits of Rs. 15 lakh and above on which varying rates of interest may be permitted on the basis of size of deposits. The permission to offer varying rates of interest will be subject to the following conditions:


(i) The permission to offer varying rates of interest for deposits of the same maturity will apply to single term deposits of Rs.15 lakh and above. Banks may, therefore, offer same rate of interest or different rates of interest for deposits of Rs.15 lakh and above. For deposits below Rs.15 lakh of the same maturity the same rate will apply.

(ii) Banks should disclose in advance the schedule of interest rates payable on deposits including deposits on which differential interest will be paid. Interest rates paid by the bank should be as per the schedule and should not be subject to negotiation between the depositor and the bank.


(d) pay brokerage in the form of commission or gift or incentives on deposits in any manner or in any other form to any individual, firm, company, association, institution or any other person except -


(i) commission paid to agents employed to collect door-to-door deposits under a special scheme;

(ii) inexpensive gifts costing not more than Rs.250/-; and

(iii) incentives granted to staff members as approved by the Reserve Bank of India from time to time.


(e) employ/engage any individual, firm, company, association, institution or any other person for collection of deposit or for selling any other deposit linked products on payment of remuneration or fees or commission in any form or manner, except to the extent permitted in sub-clause (i) of clause (d) above.

(f) launch prize/lottery/free trips (in India and/or abroad), etc. oriented deposit mobilisation schemes.

(g) resort to unethical practices of raising of resources through agents/third parties to meet the credit needs of the existing/prospective borrowers or to grant loans to the intermediaries based on the consideration of deposit mobilisation.

(h) issue any advertisement/literature soliciting deposits from public highlighting only the compounded yield on term deposits without indicating the actual rate of simple interest offered by bank for the particular period. Simple rate of interest per annum for the period of deposit should be indicated invariably.

(i) pay interest on margin money held in current account.

(j) pay interest on "deposit at call" receipts issued by it to the tenderers (contractors) for submission to Government Departments/Semi-Quasi Government bodies, local bodies, etc. against the money held in current account.

(k) accept interest-free deposit other than in current account or pay compensation indirectly.

(l) accept deposits from/at the instance of private financiers or unincorporated bodies under any arrangement which provides for either issue of deposit receipt/s favouring client/s of private financiers or giving of an authority by power of attorney, nomination or other-wise, for such clients receiving such deposits on maturity.

(m) grant advances against fixed deposit receipts or other term deposits of other banks.

(n) (i) open a savings deposit account in the name of Government departments/bodies depending upon budgetary allocations for performance of their functions/Municipal Corporations or Municipal Committees/ Panchayat Samitis/State Housing Boards/Water and Sewerage/Drainage Boards/State Text Book Publishing Corporations/Societies/Metropolitan Development Autho-rity/State/ District Level Housing Co-operative Societies, etc. or any political party or any trading/business or professional concern, whether such concern is a proprietary or a partnership firm or a company or an association.

Explanation:

For the purposes of this clause, ‘political party’ means an association or body of individual citizens of India, which is, or is deemed to be registered with the Election Commission of India as a political party under the Election Symbols (Reservation and Allotment) Order, 1968 as in force for the time being.

(ii) The above prohibition will not apply in the case of the organisations/agencies listed in Annexure V.

ANNEXURE I

Rates of Interest on Deposits held in Domestic/Ordinary Non-Resident/(NRO) Accounts

[Per cent per annum]

Category of Account(i)	Current				Nil(ii)	Savings				4.0(iii)	Term Deposits:	(a) Below Rs. 15 lakh,	15 days and above			Free	(b) Rs. 15 lakh and above,	7 days and above			Free

ANNEXURE II

Interest rates applicable to deposits held in Non-Resident (External) Accounts

[Per cent per annum]

(i)	Current				Nil(ii)	Savings accounts			4.0(iii)	Term Deposits:	6 months and over			Free

ANNEXURE III

List of institutions permitted to participate in the Call/Notice/Term Money Market both as lenders and borrowers

1. All Scheduled Commercial Banks

2. Co-operative Banks other than Land Development Banks

3. Discount and Finance House of India Ltd;

4. Securities Trading Corporation of India Ltd.;

5. PNB Gilts Ltd.;

6. SBI Gilts Ltd.;

7. Gilt Securities Trading Corporation Ltd.,

8. ICICI Securities and Finance Company Ltd.,

9. ABN Amro Securities (India) Pvt. Ltd.,

10. J.P. Morgan Securities India Pvt. Ltd., 11. Tata TD Waterhouse Securities Ltd.,

12. Kotak Mahindra Capital Company (Unlimited);

13. DSP Merrill Lynch Ltd.,

14. Deutsche Securities (India) Pvt. Ltd;

15. IDBI Capital Market Services Ltd.

16. Corpbank Securities Ltd.

17. HSBC Primary Dealership (India) Pvt. Ltd.

18. Standard Chartered-UTI Securities India Pvt. Ltd.

19. Banc of America Securities (India) Pvt. Ltd.

20. BOB Capital Markets Ltd.

ANNEXURE IV

List of institutions permitted to participate in the
Call/Notice Money Market only as lenders

1. Life Insurance Corporation of India,

2. Unit Trust of India,

3. General Insurance Corporation of India and its subsidiaries,

4. Industrial Development Bank of India,

5. National Bank for Agriculture and Rural Development,

6. Industrial Credit and Investment Corporation of India Ltd.,

7. Industrial Investment Bank of India,

8. Export Credit and Guarantee Corporation of India Ltd.,

9. SBI Mutual Fund,

10. Canbank Mutual Fund,

11. Industrial Finance Corporation of India, 12. National Housing Bank,

13. Tourism Finance Corporation of India Ltd.,

14. Export-Import Bank of India,

15. LIC Mutual Fund,

16. Small Industries Development Bank of India,

17. BOI Mutual Fund,

18. Indian Bank Mutual Fund,

19. PNB Mutual Fund,

20. GIC Mutual Fund,

21. BOB Mutual Fund,

22. IDBI Mutual Fund,

23. Birla Mutual Fund,

24. Morgan Stanley Mutual Fund,

25. Shriram Mutual Fund,

26. J. M. Mutual Fund,

27. Pioneer ITI Mutual Fund Pvt. Ltd.,

28. Prudential ICICI Mutual Fund,

29. Alliance Capital Mutual Fund,

30. Zurich India Mutual Fund,

31. Taurus Mutual Fund,

32. Tata Mutual Fund,

33. Reliance Capital Mutual Fund,

34. Jardine Fleming Mutual Fund,

35. H. B. Mutual Fund,

36. Templeton Mutual Fund,

37. Sun F&C Mutual Fund,

38. ITC Threadneedle Mutual Fund,

39. Escorts Mutual Fund,

40. Sundaram Mutual Fund,

41. DSP Merill Lynch Mutual Fund

42. Kotak Mahindra Mutual Fund

43. Infrastructure Leasing and Financial Services Ltd. Mutual Fund,

44. Dundee Mutual Fund

45. ING Savings Trust Mutual Fund

46. Chola Mutual Fund

47. Standard Chartered Mutual Fund

48. HDFC Mutual Fund

49. ICICI Prudential Life Insurance Company Ltd.

50. Royal Sundaram Alliance Insurance Ltd.

51. IFFCO-Tokio General Insurance Company Ltd.

52. HDFC Standard Life Insurance Company Ltd.

ANNEXURE V

List of organisations/bodies to which prohibition contained in
Clause 22(n)(i) of the directive will not be applicable

(1) Primary Co-operative Credit Society which is being financed by the bank.

(2) Khadi and Village Industries Boards.

(3) Agriculture Produce Market Committees.

(4) Societies registered under the Societies Registration Act, 1860 or any other corresponding law in force in State or a Union Territory.

(5) Companies governed by the Companies Act, 1956 which have been licensed by the Central Government under Section 25 of the said Act, or under the corresponding provision in the Indian Companies Act, 1913 and permitted, not to add to their names the words ‘Limited’ or the words ‘Private Limited’.

(6) Institutions other than those mentioned in clause 22(n) (i) and whose entire income is exempt from payment of Income-tax under the Income-Tax Act, 1961.

(7) Government departments/bodies/agencies in respect of grants/ subsidies released for implementation of various programmes/ schemes sponsored by Central Government subject to production of an authorization from the respective Government departments to open savings bank account.

(8) Development of Women and Children in Rural Areas (DWCRA).

(9) Self-help Groups (SHGs), registered or unregistered, which are engaged in promoting savings habits among their members.

(10) Farmers’ Clubs-Vikas Volunteer Vahini-VVV.

Annexure VI

List of directives/circulars instructions in which have been
Incorporated in the Master Circular on Interest Rates on
Rupee Deposits held in Domestic/NRO/NRE Accounts

1.	DBOD No. Dir.BC.	07/13.03.00/2001-02	dated 11.08.2001
2.	DBOD No. FSC.BC.	30/24.91.001/2001-02	dated 28.09.2001
3.	-do-	31/24.92.001/2001-02	dated 28.09.2001
4.	-do-	41/24.91.001/2001-02	dated 01.11.2001
5.	-do-	49/24.92.001/2001-02	dated 24.11.2001
6.	-do-	51/24.92.001/2001-02	dated 04.12.2001
7.	-do-	85/24.92.001/2001-02	dated 03.04.2002
8.	DBOD No. Dir.BC.	93/13.01.09/2001-02	dated 29 April 2002

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