an in in ndia        12.33
         (v) SMERA (Small and Medium Enterprises                   dealers and with banks authorised by the Reserve
                Rating Agency) was set up in September             Bank of India (RBI) which include:55
                2005, to rate the overall strength of small              (i) Foreign Currency Non-Resident (Bank)
                and medium enterprises (SMEs)—the                             Account [FCNR(B) Account]
                erstwhile SSIs. It is not a credit rating              (ii) Non-Resident External Account (NRE
                agency precisely, but its ratings are used                    Account)
                for this purpose, too. A joint venture of
                                                                      (iii) Non-Resident Ordinary Rupee Account
                SIDBI (the largest share-holder with 22
                                                                              (NRO Account)
                per cent stake), SBI, ICICI Bank, Dun
                & Bradstreet (an international credit                   FCNR(B) accounts can be opened by NRIs
                information company), five public sector           and Overseas Corporate Bodies (OCBs) with an
                banks (PNB, BOB, BOI, Canara Bank,                 authorised dealer. The accounts can be opened in
                UBI with 28 per cent stake together) and           the form of term deposits. Deposits of funds are
                CIBIL (Credit Information Bureau of                allowed in Pound Sterling, US Dollar, Japanese
                India Ltd.).                                       Yen and Euro. Rate of interest applicable to these
                           A general credit rating service         accounts are in accordance with the directives
                not linked to any debt issue is also               issued by RBI from time to time.
                availed by companies—already offered                    NRE accounts can be opened by NRIs and
                in India by rating agencies—CRISIL                 OCBs with authorised dealers and with banks
                calls such ratings as Credit Assessment.53         authorised by RBI. These can be in the form
                International rating agencies such as              of savings, current, recurring or fixed deposit
                Moody’s, S & P also undertake sovereign            accounts. Deposits are allowed in any permitted
                ratings, i.e., of countries—highly                 currency. Rate of interest applicable to these
                instrumental in external borrowings of             accounts are in accordance with the directives
                the countries.                                     issued by RBI from time to time.
           Individuals are also covered by credit appraisal        NRO accounts can be opened by any person
     which is on useful information for the consumer               resident outside India with an authorised dealer or
     credit firms. To maintain a database on the credit            an authorised bank for collecting their funds from
     records of individuals the credit Information                 local bonafide transactions in Indian Rupees.
     Bureau of India Limited (CIBIL) was set up in                 When a resident becomes an NRI, his existing
     May 2004 which makes credit informations                      Rupee accounts are designated as NRO. These
     available to banks and financial institutions about           accounts can be in the form of current, savings,
     prospective individual borrowers54                            recurring or fixed deposit accounts.
                                                                        There were two more NRI deposit accounts
        non-resIdent IndIan dePosIts                               in operation, viz., Non-Resident (Non-Repatriable)
     Foreign Exchange Management (Deposit)                         Rupee Deposit Account and Non-Resident (Special)
     Regulations, 2000 permits Non-Resident Indians                Rupee Account—an amendment to Foreign
     (NRIs) to have deposit accounts with authorised               Exchange Management (Deposit) Regulations, in
                                                                   2002, discontinued the acceptance of deposits in
       53.   S. Sundararajan, Book of Financial Terms, (New Delhi: these two accounts from April 2002 onwards.
             Tata McGraw Hill, 2004), p. 44.
       54.   As per the latest update by the RBI, 11 May, 2012.      55.    As per the latest update by the RBI, 11 May, 2012.