RBI Advances Commercial-Bank FCNR(B) and NRE Deposit Relaxation End-Date to 31 August 2026
Banking regulation | 25 August 2026
Key development: The Reserve Bank of India has brought forward, from 30 September 2026 to 31 August 2026, the end-date for specified commercial-bank relaxations relating to FCNR(B) and NRE deposits and the corresponding CRR and SLR exemptions.
| Authority | Reserve Bank of India |
| Interest-rate direction | RBI/2026-27/243; DOR.SOG(SPE).REC.211/13.03.00/2026-27 |
| CRR/SLR direction | RBI/2026-27/238; DOR.RET.REC.205/12.01.001/2026-27 |
| Effective date | 25 August 2026, with immediate effect |
Interest-rate relaxation now ends on 31 August
Under the Commercial Banks – Interest Rate on Deposits Third Amendment Directions, 2026, the RBI substituted 31 August 2026 for 30 September 2026 in the temporary regime introduced from 17 June 2026.
That regime concerned the temporary withdrawal of the interest-rate ceiling for fresh FCNR(B) deposits with tenors of three to five years and the temporary restriction governing interest rates on NRE deposits with tenors of three years and above, including eligible renewals. The amendment changes the terminal date; it does not alter the stated tenor conditions.
CRR and SLR exemptions also end earlier
A separate Fourth Amendment to the Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio Directions, 2025 makes the corresponding date change for reserve exemptions:
- For fresh FCNR(B) deposits of at least three years and not more than five years, the relevant mobilisation window now runs from 8 June 2026 to 31 August 2026.
- For fresh NRE term deposits of three years or more, including eligible renewals, the relevant mobilisation window now runs from 19 June 2026 to 31 August 2026.
Legal basis and procedural status
The interest-rate amendment was issued under section 35A of the Banking Regulation Act, 1949. The CRR/SLR amendment invokes section 35A and sections 18 and 24 of the Banking Regulation Act, 1949, together with section 42 of the Reserve Bank of India Act, 1934. Both are final, binding directions and took immediate effect on 25 August 2026.
Practical significance
Commercial banks should treat 31 August 2026 as the revised cut-off for the specified pricing relaxations and reserve exemptions. Deposit mobilisation campaigns, rate cards, treasury assumptions, reserve computations and customer communications built around the earlier 30 September date require prompt revision. Deposits outside the amended window must be assessed under the ordinarily applicable directions.
Official sources
- Commercial Banks – Interest Rate on Deposits Third Amendment Directions, 2026
- Commercial Banks – CRR and SLR Fourth Amendment Directions, 2026
This report is for general legal information only and does not constitute legal, regulatory or financial advice.