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RBI ReportPublished 10 Aug 2026Read time 1 minEffective 8 Jun 2026

RBI Tweaks Bank Lending Rules Linked to NRI Deposits

RBI changed how banks count loans for their mandatory priority lending targets.

Impact
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For information only. Not financial advice. Verify with official sources before taking any action.

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What happened

The RBI has changed how banks calculate their Priority Sector Lending (PSL) targets. PSL means the portion of loans banks must give to farmers, small businesses, and other priority groups. Loans given against certain NRI deposits — called FCNR(B) and NRE deposits — will now be excluded from this calculation between June 2026 and September 2026.

Why it matters

The RBI is trying to attract more foreign currency into India by making it easier and more attractive for NRIs to bring money home. By giving banks relief on lending rules linked to these deposits, the RBI encourages banks to offer better terms on NRI fixed deposits. This is a banking system measure, not a direct consumer policy change.

What to check

  • →Check with your bank if they are offering improved interest rates on NRE or FCNR(B) fixed deposits as a result of this policy.
  • →Find out if you have family members who are NRIs — they may now get better deposit offers from Indian banks.
  • →Look at the window period: this relief applies only to deposits made between June 8, 2026 and September 30, 2026.
  • →Ask your bank branch whether loans taken against these NRI deposits are affected in any way by this change.
  • →Consider that this circular is primarily a technical banking rule change — its direct impact on ordinary savings or loans is limited.

This is general information, not financial advice. Check your own position with your lender or an adviser.

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