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RBI ReportPublished 28 Aug 2026Read time 1 minEffective 25 Aug 2026

RBI Shortens Special NRI Deposit Rate Window by One Month

RBI has moved the end date for special NRI deposit rates from September 30 to August 31, 2026.

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

RBI has cut short a special relaxation period for NRI deposit interest rates at Small Finance Banks. The relaxation — which allowed higher interest rates on certain NRI deposits — was set to run until September 30, 2026, but will now end on August 31, 2026. This applies to two types of NRI deposits: FCNR(B) deposits (foreign currency deposits kept in India) for 3 to 5 year terms, and NRE deposits (rupee deposits funded from foreign earnings) for 3 years and above.

Why it matters

RBI temporarily lifted interest rate caps on certain NRI deposits at Small Finance Banks starting June 17, 2026, likely to attract more foreign funds into India. By ending this window one month early, RBI signals it is reviewing inflow conditions and tightening its interest rate controls sooner than planned. This affects NRIs who were planning to open or renew such deposits before the original September 30 deadline.

What to check

  • →Check whether you or a family member abroad holds an FCNR(B) or NRE deposit at a Small Finance Bank that matures or is due for renewal before August 31, 2026
  • →Find out the current interest rate your Small Finance Bank is offering on NRE or FCNR(B) deposits, as rates may change after August 31, 2026
  • →Look at whether you were planning to open a new NRE or FCNR(B) deposit at a Small Finance Bank — the higher rate window now closes August 31, not September 30
  • →Ask your bank directly what interest rate will apply to your deposit after August 31, 2026 if it continues or renews
  • →Consider checking whether larger scheduled commercial banks offer comparable rates on NRE or FCNR(B) deposits as an alternative

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

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