RBI asks banks not to give additional rate to NRI staff member

All the bank employees and retired bank employees are entitled to one per cent additional rate of interest for their deposits.  All these days this was allowed for NRI employees also.  now there is a change.

JULY 18, 2012

MUMBAI: The Reserve Bank of India today directed banks not to provide one per cent additional interest rate to its non-resident existing or retired staff members.

"On a review, it has now been decided that banks should not allow the benefit of additional interest rate on any type of deposits of non-residents," RBI said in a notification.

The discretion given to banks to allow the benefit of additional interest rate of one per cent per annum as available to bank's own staff on deposits under foreign currency non-resident (FCNR) accounts stands withdrawn," it said.

The central bank has also withdrawn similar discretion given to banks with regard to non-resident ordinary (NRO) and non-resident external (NRE) accounts.

"Accordingly, the discretion given to banks to allow the benefit of additional interest rate of one per cent per annum as available to bank's own staff on deposits under NRE/NRO accounts stands withdrawn," RBI said in a separate notification.