As per the credit policy announced by the RBI Governor Bimal Jalan on 19th April, 2001 the following are the highlights relating to the FCNR (B) deposits .
1. The ceiling on the FCNR (B) deposits has been lowered to LIBOR on par with the global fall in rates. The exporters who had the option to avail pre and post shipment credit in foreign currency at a ceiling rate of LIBOR plus 1.5 percentage points can now get credit in foreign currency on par with LIBOR rate
2. According to the credit policy banks are free to accept FCNR (B) deposits for a maturity period of 1-3 years.
The table given below depicts the LIBRO rates as on 19th April, 2001 for FCNR (B) for the following five currencies US Dollar, Euro, Great Britain Pound, Japanese Yen and Deutsche Mark. |
| LIBOR RATES as on 19th April, 2001 |
| Currency |
Symbol |
Time period |
| |
|
6 months |
1 year |
| US Dollar |
$ |
4.74 |
4.80 |
| Euro |
|
4.68 |
4.62 |
| GBP |
£ |
5.37 |
5.34 |
| Japanese Yen |
¥ |
0.11 |
0.13 |
| Deutsche Mark |
DM |
4.68 |
4.62 |
|
|
 |
| |
|
|
|
