New Delhi: The Reserve Bank of India (RBI) on Wednesday temporarily withdrew the interest-rate ceiling on fresh Foreign Currency Non-Resident (Bank) deposits of three to five years’ maturity, in a move designed to draw in foreign capital and support dollar inflows.

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The central bank also relaxed restrictions on interest rates for Non-Resident External (NRE) deposits of three years and above, including renewals on maturity, until September 30, 2026.

In a circular, the RBI said the ceiling on fresh FCNR(B) deposits mobilised by banks — including renewals — for tenors of three years and above, up to five years, has been withdrawn with effect from June 17, 2026. The relaxation will remain in force until September 30, 2026.

FCNR(B) deposits are term accounts that allow non-resident Indians to park overseas earnings in foreign currency with Indian banks.

The RBI also reiterated that interest rates on NRE and NRO deposits must not exceed those offered on comparable domestic rupee term deposits.

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The move comes as part of a wider package announced earlier this month to attract foreign capital, even as the rupee faces pressure against the US dollar. One of those measures included concessional forex swaps for banks raising fresh FCNR(B) deposits of 3-5 years’ maturity, with the central bank absorbing the full hedging cost until September 30, 2026.

The RBI has also issued separate notifications for commercial banks, co-operative banks, regional rural banks and small finance banks.

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