Summary: The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Second Amendment Directions, 2026 through RBI/2026-27/248, DOR.SOG(SPE).REC.214/13.03.00/2026-27 dated August 25, 2026. The amendment relates to the temporary relaxation earlier provided under the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Directions, 2025, dated November 28, 2025, as updated on June 17, 2026. Under the June 17, 2026 amendment, the interest rate ceiling on fresh FCNR(B) deposits with three-to-five-year tenors and the restriction on interest rates on NRE deposits of three years and above, including deposits renewed upon maturity, were temporarily relaxed from June 17, 2026 until September 30, 2026. On review, RBI has now decided to shorten that temporary relaxation period by replacing the date September 30, 2026 with August 31, 2026. The amendment is issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 and comes into force with immediate effect. Specifically, paragraph 24(4) subscript (1) and paragraph 29(7) subscript (2) of the 2025 Directions are amended by substituting the reference to the period ending September 30, 2026 with a reference to the period ending August 31, 2026. Accordingly, the temporary relaxation covered by the identified provisions is brought to an earlier end date of August 31, 2026.
Reserve Bank of India
RBI/2026-27/248
DOR.SOG(SPE).REC.214/13.03.00/2026-27 | Dated: August 25, 2026
Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Second Amendment Directions, 2026
Please refer to the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Directions, 2025 (hereinafter referred to as ‘Directions’), dated November 28, 2025 (Updated as on June 17, 2026), wherein temporary withdrawal of the interest rate ceiling on fresh FCNR(B) deposits of 3-5 year tenors and restriction on interest rates on NRE deposits of 3 year and above tenors, including the deposits that are renewed upon maturity, have been provided with effect from June 17, 2026, for the period until September 30, 2026. On a review, it has been decided to amend the date ‘September 30, 2026’ to the date ‘August 31, 2026’ for the aforementioned temporary relaxation.
2. Accordingly, in exercise of the powers conferred by Section 35A read with Section 56 of the Banking Regulation Act,1949 and all other laws enabling the Reserve Bank India (RBI) in this regard, the RBI, being satisfied that it is necessary and expedient in public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
3. These Amendment Directions shall be called the Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Second Amendment Directions, 2026.
4. These Amendment Directions shall come into force with immediate effect.
5. These Amendment Directions shall modify the Directions, as under:
1) In paragraph 24(4) subscript (1), the phrase “with effect from June 17, 2026, for the period until September 30, 2026” shall be substituted with “with effect from June 17, 2026, for the period until August 31, 2026”.
2) In paragraph 29(7) subscript (2), the phrase “with effect from June 17, 2026, for the period until September 30, 2026” shall be substituted with “with effect from June 17, 2026, for the period until August 31, 2026”.
(Dr. Sudarsana Sahoo)
Chief General Manager
