In a bid to attract more dollars, the RBI has allowed banks to continue to offer higher interest rates to non-resident (external) rupee and foreign currency non-resident deposits for two more months.
In mid-August, the RBI had allowed banks the freedom to offer interest rates without any ceiling on NRE deposits till November 30.
The same has now been extended to January 31, 2014.
Such-term deposits, with maturity of three years, will continue to be exempted from cash reserve ratio and statutory liquidity ratio requirements for another two months.
The RBI also allowed banks to offer higher interest for foreign currency non-resident (FCNR) deposits for a period of two more months.
In August, the RBI had revised the interest rate offered by banks to FCNR deposits by 100 basis points.