Non-resident deposits: Banks barred from giving staff extra interest

http://www.thehindubusinessline.com/industry-and-economy/banking/article3657340.ece

Banks cannot give additional interest rate benefit of one per cent per annum to their own staff on deposits under FCNR (B), NRE and NRO accounts, according to the Reserve Bank of India.

In a notification, the RBI said, “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.

“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rate of one per cent per annum as available to bank’s own staff on deposits under FCNR(B)/ NRE/ NRO accounts stands withdrawn.”