The Reserve Bank of India (RBI) has temporarily removed the interest rate ceilings on fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits with maturities of three to five years and on Non-Resident External (NRE) deposits with tenors of three years and above until 30 September 2026. Effective 17 June 2026, the measure gives banks greater flexibility to offer more competitive interest rates to attract long-term deposits from Non-Resident Indians (NRIs), thereby boosting foreign currency inflows and strengthening external sector liquidity. The relaxation applies to both fresh and renewed eligible deposits, although transfers from NRO to NRE accounts remain outside its scope, reflecting the RBI's efforts to enhance foreign exchange resources amid evolving global financial conditions.

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