SBI plans 2 plans for RIB holders

As the deadline for the redemption of Resurgent India Bonds are nearing State Bank of India (SBI) is making all efforts to tap the potential of the huge foreign exchange deposits.

SBI has devised two new deposit plans for non resident Indians (NRIs) called Pravasi Vaibhav and Pravasi Samriddhi. Pravasi Vaibhav is a deposit scheme that will be denominated in rupees with payment of maturity proceeds in US dollars.

If an NRI likes to make investment in Pravasi Vaibhav he would sent the funds or deposit in dollars which would then be converted into rupees to be issued an NRE Special Term Deposit Receipt (NRE-STDT) for one year. 

This would be supplemented by a forward cover to be booked for the customer for one year so as to facilitate the conversion of rupees into dollars. The minimum amount that would be required for depositing is $10,000 or equivalent.

 The product would be offered at 26 branches across the country catering to NRIs.

The other scheme Pravasi Samriddhi will be offered at the offshore banking units at Bahrain, Nassau and SEEPZ (Mumbai) and offers NRIs the opportunity for investment on floating or fixed rate of interest. 

The deposit will be denominated in US Dollars and Euros and $5,000 or equivalent is the minimum amount for deposit. The maturity will be for one, two, three and five years.