What changed
- Interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors has been temporarily withdrawn.
- Restriction on interest rates on NRE deposits of 3 year and above tenors has been temporarily lifted.
What it means for you
- Rural co-operative banks can now offer higher interest rates on these deposits, which may attract more deposits and increase their lending capacity.
- However, this relaxation is only temporary and will be in effect until September 30, 2026.
What you must do
- Review and update deposit interest rates accordingly.
- Ensure compliance with RBI guidelines and regulations.
Who it affects
Rural co-operative banks, Depositors of NRE and FCNR(B) deposits
What is the duration of this relaxation?
This relaxation is effective until September 30, 2026.
Will this relaxation apply to all types of deposits?
No, this relaxation only applies to fresh FCNR(B) deposits of 3-5 year tenors and NRE deposits of 3 year and above tenors.