Regulatory Alerts2026-06-17
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Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026
The temporary withdrawal of interest rate ceilings on fresh FCNR(B) deposits with three to five-year tenors and restrictions on interest rates for NRE deposits of three years and above is effective from June 17, 2026, until September 30, 2026. This exemption applies to deposits mobilized by banks, including those renewed upon maturity, but excludes any transfers from NRO accounts to NRE accounts. Paragraph 27(4) of the Directions is amended to reflect that NRE/NRO deposit rates shall not exceed comparable domestic rupee term deposit rates, while paragraph 32(7) is amended to specify ceiling rates for foreign currency deposits.
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( 248 kb ) Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026
RBI/2026-27/138 DOR.SOG(SPE).REC.117/13.03.00/2026-27
June 17, 2026
Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026
Please refer to the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Directions, 2025 (hereinafter referred to as ‘Directions’), dated November 28, 2025. On a review, it has been decided to temporarily withdraw interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and restriction on interest rates on NRE deposits of 3 year and above tenors, including the deposits that are renewed upon maturity, from the date of this Amendment Directions till September 30, 2026.
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Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act,1949 and all other laws enabling the Reserve Bank India (RBI) in this regard, the RBI, being satisfied that it is necessary and expedient in public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
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These Amendment Directions shall be called the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026.
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These Amendment Directions shall come into effect from the date of issue.
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These Amendment Directions shall modify the Directions, as under:
(1) In Chapter IV on Rupee Deposits of Non-Residents, the paragraph 27(4) shall be amended as under:
Interest rates on NRE / NRO deposits shall not be higher than those offered by the bank on comparable domestic rupee term deposits 1 .
(2) In Chapter V on Foreign Currency Deposits, the paragraph 32(7) shall be amended as under:
Period of Deposit
Ceiling Rate
One year to less than three years
Overnight Alternative Reference Rate for the respective currency/ Swap plus 250 basis points
Three years and above upto and including five years
Overnight Alternative Reference Rate for the respective currency/ Swap plus 350 2 basis points
(Dr. Sudarsana Sahoo) Chief General Manager
1 The said restriction with respect to interest rates offered on fresh NRE deposits mobilised by banks, including the deposits that are renewed upon maturity, for three years and above tenors, is temporarily withdrawn with effect from June 17, 2026, for the period until September 30, 2026. Any transfer from NRO accounts to NRE accounts shall not qualify for such exemption.
2 The interest rate ceiling applicable to fresh FCNR(B) deposits mobilised by banks, including the deposits that are renewed upon maturity, for three years and above-upto and including five years tenors, is temporarily withdrawn with effect from June 17, 2026, for the period until September 30, 2026.
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