SBI to pay existing FCNR(B) rate for RIB proceeds

State Bank of India (SBI) has started the roadshow to lure the Non Resident Indians to invest the Resurgent India Bond (RIB) proceeds which are maturity on October 1, 2003 back with the country's largest commercial bank. Infact Reserve Bank of India has given approval of the scheme to State Bank of India.

As per the scheme the bank will pay the existing FCNR(B) deposit rate for those who retain their RIB redemption proceeds with the bank. The five-year RIB, which was launched by SBI on August 5, 1998, for non-resident Indians (NRIs), overseas corporate bodies (OCBs) and banks acting in fiduciary capacity on behalf of NRIs/OCBs, had mobilised over $4 billion and is maturing on October 1, 2003. The maximum rate for a three-year FCNR(B) deposit of SBI is currently pegged at 2.61 per cent.  

All requests for transfer/gift should be submitted to NRI branch, Mumbai, at least 90 days preceding the date of maturity and no transfer will be registered thereafter. If this is not done, maturity proceeds will be paid to the transferor/donor and not transferee/donee.

FCNR accounts can be maintained only in the form of term deposits—a deposit kept for fixed periods ranging from one year to three years. FCNR accounts can be maintained in pound sterling, dollar, deutsche mark, euro and yen.