RBI reduces NBFCs’ deposit rates limit to 11% from 12.5%
By Mumbai: | 05 Mar 2003
Mumbai:
The Reserve Bank of India (RBI) has lowered the maximum
interest rate, which non-banking finance companies (NBFCs)
can offer on deposits, to 11 per cent from 12.5 per cent.
The last time the central bank revised the interest rate ceiling on deposits with NBFCs was on 1 November 2001 when it pared the maximum payable rate from 14 per cent to 12.5 per cent.
An
RBI press communiqué said: “Taking into account
the market conditions and changes in other interest rates
in the entire financial
system, the maximum rate of interest that NBFCs can pay
their public deposits has been revised to 11 per cent
per annum effective 4 March 2003.”