--- title: "Temporary Relaxation in Interest Rates on NRE and FCNR(B) Deposits Brought to an Early Close " date: 2026-09-29 author: "King Stubb & Kasiva" url: https://ksandk.com/newsletter/temporary-relaxation-in-interest-rates-on-nre-and-fcnrb-deposits-brought-to-an-early-close/ --- # Temporary Relaxation in Interest Rates on NRE and FCNR(B) Deposits Brought to an Early Close  Posted On - 29 September, 2026 • By - King Stubb & Kasiva The Reserve Bank of India (“RBI”) has brought forward the expiry of the temporary relaxation in interest rates payable on certain Non-Resident External (“NRE”) and Foreign Currency Non-Resident (Bank) (“FCNR(B)”) deposits from September 30, 2026 to August 31, 2026.  The change has been implemented through six separate amendment directions applicable to Commercial Banks, Small Finance Banks, Regional Rural Banks, Local Area Banks, Urban Co-operative Banks and Rural Co-operative Banks. The amendments replace the reference to September 30, 2026 with August 31, 2026 in the relevant provisions governing NRE and FCNR(B) deposits.  Accordingly, the relaxed interest-rate regime applies only to eligible deposits contracted or renewed on or before August 31, 2026. From September 1, 2026, the normal interest-rate ceilings applicable to fresh and renewed NRE and FCNR(B) deposits will apply.  Banks should accordingly review their interest-rate cards, deposit booking systems, renewal instructions and customer-facing communications to ensure that the revised deadline is reflected across all channels.  *Last Updated on 29 September, 2026* Get King Stubb & Kasiva’s legal updates in your Google feed[![Add King Stubb & Kasiva as a preferred source on Google](https://ksandk.com/wp-content/uploads/google_preferred_source_badge_light_en@2x.png)](https://www.google.com/preferences/source?q=https://ksandk.com/) --- ## Office Locations - [New Delhi](https://ksandk.com/locations/top-corporate-law-firm-in-delhi/) (HQ): +91-11-41318190 | info@ksandk.com - [Mumbai](https://ksandk.com/locations/top-corporate-law-firm-in-mumbai/): 3 offices (Nariman Point, Lower Parel, Andheri) | mumbai@ksandk.com - [Bangalore](https://ksandk.com/locations/top-corporate-law-firm-in-bangalore/): bangalore@ksandk.com - [Chennai](https://ksandk.com/locations/chennai/): chennai@ksandk.com - [Hyderabad](https://ksandk.com/locations/hyderabad/): hyderabad@ksandk.com - [Pune](https://ksandk.com/locations/pune/): pune@ksandk.com - [Kochi](https://ksandk.com/locations/kochi/): kochi@ksandk.com ## Contact - [Contact Page](https://ksandk.com/contact-us/) - General: info@ksandk.com | +91-11-41318190 - WhatsApp: +91-7428567444 - [Privacy Statement](https://ksandk.com/privacy-statement/) - [Terms of Use](https://ksandk.com/terms-of-use/)