Summary: The Reserve Bank of India (RBI) has issued RBI/2026-27/243, DOR.SOG(SPE).REC.211/13.03.00/2026-27 dated August 25, 2026, titled Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Third Amendment Directions, 2026. The Amendment Directions modify the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Directions, 2025, dated November 28, 2025, which were updated as on June 17, 2026.
The amendment relates to the temporary relaxation introduced with effect from June 17, 2026 under the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026. That earlier amendment temporarily withdrew the interest-rate ceiling on fresh FCNR(B) deposits having three-to-five-year tenors and the restriction on interest rates on NRE deposits having three years and above tenors, including deposits renewed upon maturity, until September 30, 2026. The present amendment brings that temporary relaxation to an earlier end date.
On review, RBI has decided to replace the date September 30, 2026 with August 31, 2026. Accordingly, the temporary relaxation specified in the June 17, 2026 amendment will operate only until August 31, 2026, as expressly provided in the present amendment.
The change is made through two specific substitutions in the 2025 Directions. First, in paragraph 27(4) subscript (1), the phrase referring to the temporary relaxation from June 17, 2026 until September 30, 2026 is replaced with a reference to the period until August 31, 2026. Second, in paragraph 32(7) subscript (2), the corresponding reference is similarly changed to August 31, 2026. The June 17, 2026 amendment had inserted the temporary relaxation into paragraph 27(4) concerning NRE/NRO deposits and paragraph 32(7) concerning FCNR(B) deposits.
The amendment therefore does not introduce a new category of deposit or a new interest-rate formula in the supplied text. Its stated purpose and operative effect are limited to changing the end date of the existing temporary relaxation from September 30, 2026 to August 31, 2026. The affected framework concerns commercial banks and the specified NRE and FCNR(B) deposit provisions.
The Amendment Directions are issued in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949. The RBI states that it is satisfied that the amendment is necessary and expedient in the public interest. The Amendment Directions come into force with immediate effect. Thus, for the provisions specifically amended, the relevant temporary relaxation now has August 31, 2026 as its stated end date.
Reserve Bank of India
RBI/2026-27/243
DOR.SOG(SPE).REC.211/13.03.00/2026-27 | Dated: August 25, 2026
Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Third Amendment Directions, 2026
Please refer to the Reserve Bank of India (Commercial 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 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 (Commercial Banks – Interest Rate on Deposits) Third Amendment Directions, 2026.
4. These Amendment Directions shall come into force with immediate effect.
5. These Amendment Directions shall modify the Directions, as under:
i. In paragraph 27(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”.
ii. In paragraph 32(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
