Quick Summary
The Reserve Bank of India (RBI), in a move aimed at enhancing foreign currency inflows and providing greater flexibility to banks in mobilizing deposits from Non-Resident Indians (NRIs), has temporarily eased interest rate regulations applicable to certain NRE and FCNR(B) deposits. The RBI has issued the Reserve Bank of India (Commercial Banks - Interest Rate on Deposits) Amendment Directions, 2026, effective from June 17, 2026. The amendment temporarily withdraws the interest rate ceiling on f
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FAQ :
The RBI has temporarily removed interest rate ceilings on fresh NRE deposits of three years and above, and on fresh FCNR(B) deposits with tenures between three and five years.
The relaxation will be in effect from June 17, 2026, until September 30, 2026.
Non-Resident Indians (NRIs) may benefit from potentially higher returns on eligible deposits, and banks gain flexibility to attract overseas funds.
No, the temporary exemption specifically applies to fresh NRE deposits of three years and above mobilized during the relaxation period. NRE and NRO deposit rates generally continue to be linked to comparable domestic rupee term deposit rates.
The relaxation applies to fresh deposits as well as deposits renewed upon maturity during the specified period.
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