The Reserve Bank of India (RBI) on June 17, 2026, notified the Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Amendment Directions, 2026 to amend the Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Directions, 2025.
The following has been stated:-
•The Reserve Bank of India (RBI) has temporarily relaxed interest rate restrictions on fresh NRE deposits with tenors of three years and above and FCNR(B) deposits with tenors of three to five years, effective from June 17, 2026, to September 30, 2026.
•During this period, banks may offer interest rates on these deposits without the existing regulatory caps, including on eligible deposits renewed upon maturity.
•However, transfers from NRO accounts to NRE accounts will not be eligible for this exemption.
•The move is aimed at providing banks greater flexibility in mobilizing foreign currency and non-resident deposits.
The detailed notification is given in the document below.
[Notification No.: RBI/2026-27/140 DOR.SOG(SPE).REC.120/13.03.00/2026-27]
