RBI/2026-27/141
DOR.SOG(SPE).REC.118/13.03.00/2026-27 June 17, 2026 Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026 Please refer to the Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Directions, 2025 (hereinafter referred to as ‘Directions’), dated November 28, 2025. On a review, it has been decided to temporarily withdraw interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and restriction on interest rates on NRE deposits of 3 year and above tenors, including the deposits that are renewed upon maturity, from the date of this Amendment Directions till September 30, 2026. 2. Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act,1949 and all other laws enabling the Reserve Bank India (RBI) in this regard, the RBI, being satisfied that it is necessary and expedient in public interest so to do, hereby, issues the Amendment Directions hereinafter specified. 3. These Amendment Directions shall be called the Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Amendment Directions, 2026. 4. These Amendment Directions shall come into effect from the date of issue. 5. These Amendment Directions shall modify the Directions, as under: (1) In Chapter IV on Rupee Deposits of Non-Residents, the paragraph 26(4) shall be amended as under: Interest rates on NRE / NRO deposits shall not be higher than those offered by the bank on comparable domestic rupee term deposits1. (2) In Chapter V on Foreign Currency Deposits, the paragraph 31(7) shall be amended as under: | Period of Deposit | Ceiling Rate | | One year to less than three years | Overnight Alternative Reference Rate for the respective currency/ Swap plus 250 basis points | | Three years and above upto and including five years | Overnight Alternative Reference Rate for the respective currency/ Swap plus 3502 basis points | (Dr. Sudarsana Sahoo)
Chief General Manager
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