Reserve Bank India (RBI) has issued The Reserve Bank of India (Co-operative Banks – Interest Rate on Deposits) Directions, 2016. The provisions of these Directions shall apply to every co-operative Bank licensed or permitted to carry on banking business in India by the Reserve Bank of India. The direction requires a Co-operative Bank to pay interest on deposits of money (other than current account deposits) accepted by them or renewed by them in their Domestic, Ordinary Non-Resident (NRO), Non-Resident (External) Accounts (NRE) and Foreign Currency (Non-resident) Accounts (Banks) Scheme {FCNR(B)} deposit accounton certain prescribed terms. The direction prohibits the Co-operative banks to create any kind of lien, direct or indirect, against NRE savings deposits.