Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026
RBI notification RBI/2026-27/142 · 17 Jun 2026
RBI notification RBI/2026-27/142 · 17 Jun 2026
Summary
Check the official recordThe Reserve Bank of India temporarily removes interest rate ceilings for specific non-resident deposits. This change applies to fresh FCNR(B) deposits with tenors of three to five years. It also applies to NRE deposits with tenors of three years and above. The exemption includes deposits renewed upon maturity. This temporary measure remains in effect from June 17, 2026, until September 30, 2026. Transfers from NRO accounts to NRE accounts do not qualify for this exemption. Urban Co-operative Banks must follow the revised interest rate guidelines for the specified period.
What you must do
Key dates
Who is affected
Thresholds
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RBI/2026-27/142 DOR.SOG(SPE).REC.121/13.03.00/2026-27 June 17, 2026
Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026
Please refer to the Reserve Bank of India (Urban Co-operative 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.
Accordingly, in exercise of the powers conferred by Section 35A read with Section 56 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.
These Amendment Directions shall be called the Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026.
These Amendment Directions shall come into effect from the date of issue.
These Amendment Directions shall modify the Directions, as under:
(1) In Chapter IV on Rupee Deposits of Non-Residents, the paragraph 24(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 deposits 1 .
(2) In Chapter V on Foreign Currency Deposits, the paragraph 29(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 350 2 basis points |
(Dr. Sudarsana Sahoo) Chief General Manager
1 The said restriction with respect to interest rates offered on fresh NRE deposits mobilised 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. Any transfer from NRO accounts to NRE accounts shall not qualify for such exemption.
2 The interest rate ceiling applicable to fresh FCNR(B) deposits mobilised by banks, including the deposits that are renewed upon maturity, for three years and above-upto and including five years tenors, is temporarily withdrawn with effect from June 17, 2026, for the period until September 30, 2026.