The Reserve Bank of India (RBI) on June 17, 2026, issued the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026, further to amend the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Directions, 2025.
The following has been stated:
• With effect from June 17, 2026, to September 30, 2026, Rural Cooperative Banks may offer interest rates on fresh NRE deposits and renewals with maturities of three years and above without being constrained by the rates applicable to comparable domestic rupee term deposits. However, transfers from NRO accounts to NRE accounts are not eligible for this exemption.
• The RBI has also temporarily withdrawn the interest rate ceiling on fresh FCNR(B) deposits and renewals with tenors of three to five years during the same period. The measure is intended to help banks attract additional non-resident and foreign currency deposits by providing greater flexibility in setting deposit rates.
[Notification no. - RBI/2026-27/143 DOR.SOG(SPE).REC.122/13.03.00/2026-27]
