The Reserve Bank of India (RBI) has decided to temporarily withdraw interest rate restriction on non-resident external (NRE) deposits of 3 year and above tenors in a move aimed at attracting more capital inflows and stabilising the rupee. The central bank has also withdrawn the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors.
The restriction with respect to interest rates offered on fresh NRE deposits organize by banks, including the deposits that are renewed upon maturity, for three years and above tenors, is temporarily withdrawn with effect from June 17, 2026, for the period until September 30, 2026, it said. “Any transfer from NRO accounts to NRE accounts shall not qualify for such exemption.”