The Reserve Bank of India has temporarily withdrawn interest rate ceilings on fresh FCNR(B) deposits of 3-5 year tenors and restrictions on interest rates on NRE deposits of 3 year and above tenors.

India

Who

Reserve Bank of India (RBI), banks, Non-Resident Indians (NRIs), SBI economists, V Viswanathan

What

When

Wed, 17 Jun 2026 16:11:37 GMT · 1d 19h ago

Where

India ·

Why

This move is aimed at attracting dollar inflows to stabilize the rupee and maximize forex inflows.

The Frontline Impact

How this affects you

The temporary withdrawal of interest rate ceilings on NRI deposits is expected to attract significant dollar inflows, with SBI economists projecting around $40-45 billion through the FCNR (B) route alone, which could help stabilize the Indian rupee and increase liquidity in the banking system.

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