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Economics2h 29m ago

The Reserve Bank of India has temporarily withdrawn the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and the restriction on interest rates on NRE deposits of 3 year and above tenors.

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India

Who
Reserve Bank of India (RBI), banks, Non-Resident Indians (NRIs), SBI economists, V Viswanathan
What
The Reserve Bank of India has temporarily withdrawn the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and the restriction on interest rates on NRE deposits of 3 year and above tenors.
When
Wed, 17 Jun 2026 16:11:37 GMT · 2h 29m ago
Where
India ·
Why
This move aims to attract deposits from Non-Resident Indians to bolster dollar inflows and stabilize the rupee.
The Frontline Impact

How this affects you

The withdrawal of interest rate ceilings on NRI deposits is expected to attract significant foreign currency inflows, with SBI economists estimating around $40-45 billion from FCNR(B) deposits, which could strengthen the Indian rupee and improve liquidity for lending.

Story chain

5 events in this thread
  1. Economics2h 29m ago
    The Reserve Bank of India has temporarily withdrawn interest rate ceilings on fresh FCNR(B) deposits of 3-5 year tenors and on NRE deposits of 3 years and above.
    Open article
  2. Economics2h 29m ago
    The Reserve Bank of India (RBI) has temporarily withdrawn interest rate ceilings on fresh FCNR(B) and NRE deposits of certain tenors.
    Open article
  3. Currently Reading2h 29m ago
    The Reserve Bank of India has temporarily withdrawn the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and the restriction on interest rates on NRE deposits of 3 year and above tenors.
  4. Economics3h 37m ago
    The RBI has temporarily removed interest rate restrictions on select NRE and FCNR(B) deposits, allowing banks to offer higher rates and helping attract foreign currency inflows until September 30, 2026.
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  5. Economics4h 11m ago
    The Reserve Bank of India (RBI) on Wednesday removed interest rate ceilings on fresh three-year and five-year Foreign Currency Non-Resident Bank [FCNR(B)] deposits and certain Non-Resident External (NRE) deposits until Sept. 30, 2026.
    Open article

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