EconomySunday, 21 June 2026·The Hindu - Economy
RBI eases NRI deposit rules till Sept 30, 2026 to attract forex inflows
RBI temporarily withdrew interest-rate ceilings on certain FCNR(B) and NRE deposits until September 30, 2026 to mobilise foreign exchange.
Key highlights
Direct fact
On June 17, 2026, the Reserve Bank of India (RBI) issued Amendment Directions allowing banks to offer higher interest rates on fresh FCNR(B) deposits of 3-5 year tenor and on NRE deposits of 3 years and above, till September 30, 2026.
Key specifics
- Fresh FCNR(B) deposits of 3-5 year tenors got a temporary interest-rate ceiling withdrawal.
- NRE deposits of 3 years and above, including renewals on maturity, are covered till September 30, 2026.
- For 1 year to less than 3 years, the rate cap is Overnight Alternative Reference Rate plus 250 basis points.
- For 3 years and above up to 5 years, the cap is Overnight Alternative Reference Rate plus 350 basis points.
- NRE/NRO deposit rates cannot exceed comparable domestic rupee term deposit rates, and transfers from NRO to NRE do not qualify for exemption.
Exam lens
RBI banking regulation, FCNR(B) and NRE deposits, basis points, forex reserves: a TNPSC question may ask why the central bank relaxed deposit-rate ceilings and what the validity period is.