Mumbai: The Reserve Bank of India (RBI) on July 17 set a maximum ceiling of 250 basis points above LIBOR on the interest rate offered by banks to expatriate Rupee deposits made under the non-resident external (NRE) category from July 17.

"The interest rates on fresh repatriable NRE deposits for one to three years contracted effective July 17, 2003, should not exceed 250 basis points above the LIBOR/swap rates for US Dollar of corresponding maturity," the RBI said in a statement.

Agencies