SBI unveils interest rate for NRI deposit scheme

By siliconindia staff writer   |   Friday, 26 September 2003, 07:00 Hrs
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MUMBAI: State Bank of India (SBI) said the interest rates for its new Pravasi Samriddhi deposit scheme for non-resident Indians (NRIs) will be linked to the applicable London Inter Bank Offered Rate (LIBOR) and it will be 1.67 per cent for dollar deposits of one year.
The rate for dollar deposits of two years and three years would be 2.37 per cent and 3.05 per cent respectively based on Wednesday's dollar LIBOR rates depending upon the amount of deposit, an SBI release said on Thursday.

The bank has retained the option to refund the deposit at the end of 18 month for three year deposits, it said.

SBI chairman AK Purwar said the scheme comes with a loan on tap facility which envisages sanction of loan up to 90 per cent of the deposit amount, providing liquidity to NRIs to meet emergent financial requirements.

Referring to another NRI deposit scheme, Pravasi Vaibhav, the bank had said earlier that the foreign currency received from the customer would be converted into rupees to issue an non-resident external special term deposit receipt for a year. Simultaneously, a forward contract would also be booked to convert the NRE-STDR proceeds into USD on maturity.

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