RBI Lifts NRE/FCNR Caps: Is Your NRI Money Earning More?
RBI has temporarily removed interest rate ceilings on NRE and FCNR(B) deposits until September 2026, letting banks offer higher rates to attract foreign money. NRIs can now earn more on these tax-free accounts — but you must act before the window closes.
A ₹50L NRE FD earning 1.5% extra = ₹75,000 more per year — that's 3,750 cups of chai.
Your NRE or FCNR deposit could now earn this much — tax-free
Key Takeaways
Compare NRE and FCNR(B) rates across SBI, HDFC, ICICI, and Axis Bank right now — rates vary widely between banks.
Lock in a longer-tenure FCNR(B) deposit before September 30, 2026 to secure the higher rate for the full term.
Consult a tax advisor in your country of residence — FCNR interest may be taxable abroad even if it's tax-free in India.
RBI has temporarily removed interest rate ceilings on NRE and FCNR(B) deposits until September 2026, letting banks offer higher rates to attract foreign money. NRIs can now earn more on these tax-free accounts — but you must act before the window closes.
Here's what happened: RBI has temporarily lifted the interest rate cap on NRE savings and FCNR(B) deposits, effective until September 30, 2026.. Banks can now offer above-normal rates on these deposits to attract foreign currency inflows into India.. NRE deposits are fully tax-free in India on both interest and principal — making this a high-value window for NRIs..
What you should do: Compare NRE and FCNR(B) rates across SBI, HDFC, ICICI, and Axis Bank right now — rates vary widely between banks.. Lock in a longer-tenure FCNR(B) deposit before September 30, 2026 to secure the higher rate for the full term.. Consult a tax advisor in your country of residence — FCNR interest may be taxable abroad even if it's tax-free in India..
FCNR(B) deposits are held in foreign currency (USD, GBP, EUR), so you avoid rupee depreciation risk entirely — your principal and interest are repaid in the same currency you deposited.
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- [1]“How NRIs, OCIs may benefit as RBI allows banks to offer higher interest rates on certain FCNRs, NREs” Wealth-Economic Times · 17 Jun 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.