RBI removes cap on NRI deposit rates until September (opens original article in a new tab)

The Reserve Bank of India temporarily removed the interest rate ceiling on non-resident deposits, allowing banks to offer higher rates to attract overseas funds until September 30, 2026. This move aims to help banks strengthen liquidity and asset liability management by enabling them to compete with local deposit rates.

• RBI removes interest rate ceiling on NRI deposits until September 30, 2026
• Banks can now offer higher rates on FCNR-B deposits up to 8% or more
• Regulatory changes allow banks to strengthen liquidity and asset liability management
• Previously, rates were capped at 7.13% due to a 350 basis point ceiling