Brief Overview:

Further to recent swap concession window, the interest rate ceiling on the NRE and FCNR(B) deposits has also been relaxed.

Technical Details:

1) RBI has temporarily withdrawn interest rate ceilings till 30^th September 2026 applicable to –

(a) FCNR(B) deposits of 3–5 year tenors

(b) NRE deposits of 3 years and above

(c) Renewals of the aforementioned deposits at maturity

2) General restriction on interest rates on NRE deposits i.e. to not be higher than the rate on comparable domestic rupee term deposits is not applicable up till 30^th September 2026.

3) Relaxation not applicable to transfers from NRO to NRE accounts.

For further details, please see:

Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026

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