RBI introduces new deposit rules to attract foreign currency and ease bulk FD rates

The Reserve Bank of India (RBI) announced on 8 June 2026 a special scheme to boost foreign currency inflows by easing regulations on FCNR(B) deposits. Banks will be permitted to raise three‑to‑five‑year FCNR(B) deposits until September 2026 and will receive a special swap facility that reduces their cash‑reserve and liquidity‑ratio requirements. The RBI expects the measure could bring an additional $50‑70 billion of foreign currency into the country.

In parallel, the RBI issued a draft amendment to bulk‑deposit (FD) rules, inviting public comments until 20 June 2026. The proposal would let banks set differentiated interest rates on large‑size deposits based on their funding needs and require daily publishing of rate tables on their websites. While the changes target large investors, officials say the increased competition could eventually lead to better rates for retail fixed‑deposit customers as banks compete for deposits.

Both initiatives aim to strengthen India’s foreign‑exchange reserves and improve the overall deposit market by making Indian deposits more attractive to Non‑Resident Indians and other foreign investors.