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ARTICLE · 01 OCTOBER 2026

Corporate & Commercial Updates - Aug-Sep

King, Stubb & Kasiva
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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.

IndiaCorporate/Commercial Law

Regulatory Updates

Aug-Sep 2026

1. RESERVE BANK OF INDIA UPDATES

Temporary Relaxation in Interest Rates on NRE and FCNR(B) Deposits Brought to an Early Close

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 NonResident (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 Cooperative 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

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