RBI lifts FCNR(B) NRE rate cap until September 30 2026
The Reserve Bank of India (RBI) just removed the interest rate cap on fresh three- and five-year foreign currency non-resident bank (FCNR-B) deposits and non-resident external (NRE) deposits of three-year tenors and above, including deposits renewed upon maturity.
The goal? To make India more attractive for foreign money, with these new rules lasting until September 30, 2026.
Banks raise FCNR-B rates NRO unchanged
Banks like Bank of Baroda, Canara Bank, and Yes Bank have already bumped up their FCNR-B rates, some going as high as 7%.
For younger NRIs or anyone keeping an eye on global savings options, this could mean better returns.
However, regular NRO deposit rates aren't changing; they'll still be capped at domestic rupee term deposit rates.
It is estimated that these measures can easily bring in up to $50 billion worth of inflows in the coming months.