RBI lifts caps on FCNR(B) and NRE deposits, boosting NRI returns
The RBI removed interest rate ceilings on fresh three- to five-year FCNR(B) deposits and NRE deposits of three years plus, effective until Sept 30, 2026. Banks can now offer rates up to 8% to lure foreign funds and improve liquidity. The shift should boost forex inflows and support the rupee.