Mumbai, June 18 -- The Reserve Bank of India (RBI) has temporarily removed interest rate restrictions on Non-Resident External (NRE) deposits with tenors of 3 years and above, and on fresh Foreign Currency Non-Resident Bank [FCNR(B)] deposits with tenors of 3 to 5 years. The move is aimed at attracting more foreign capital inflows and supporting the rupee.

The relaxation came into effect on June 17, 2026, and will remain in place until September 30, 2026.

Under the revised rules, banks can offer higher interest rates on fresh NRE deposits of 3 years and above, including deposits renewed upon maturity. However, transfers from Non-Resident Ordinary (NRO) accounts to NRE accounts will not be eligible for this exemption.

An NRE account all...