RBI Updates FCNR(B) Reference Rate and Savings Account Rules
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2022-2023/117 · issued 16 Sep 2022 · ~1 min read
Quick answerRBI has shifted FCNR(B) deposit reference rates from FEDAI to FBIL effective January 31, 2022, and clarified savings account eligibility to explicitly exclude political parties and trading/business entities. Banks must update systems and policies accordingly.
What changed
The reference rates for FCNR(B) deposits are now quoted by Financial Benchmarks India Pvt. Ltd. (FBIL) instead of FEDAI, effective January 31, 2022. Additionally, the savings account opening restrictions have been made more explicit, specifically barring accounts for political parties and any trading/business/professional concerns, with a clear definition of 'political party' added.
What it means for you
Banks must update their FCNR(B) deposit pricing systems to use FBIL rates, ensuring compliance with the revised Master Directions. The clarified savings account rules reduce ambiguity, preventing inadvertent openings for ineligible entities like political parties or businesses, which could lead to regulatory penalties.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update FCNR(B) deposit interest rate calculation systems to reference FBIL rates instead of FEDAI.
Revise internal savings account opening checklists to explicitly exclude political parties and all trading/business/professional entities.
Train branch staff on the updated eligibility criteria for savings accounts, including the definition of political party.
Who it affects
All Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Payment Banks, Local Area Banks, Primary (Urban) Co-operative Banks, District Central Co-operative Banks, State Co-operative Banks
❓ Common questions
Regulatory timeline
Stated effective dateeffective January 31, 2022
Decoded by BankPulse2026-06-18 05:32 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the effective date for using FBIL reference rates for FCNR(B) deposits?
The change from FEDAI to FBIL reference rates is effective from January 31, 2022, as stated in the RBI circular dated September 16, 2022.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #217: DOR.SOG(SPE).REC.No 68/13.03.00/2022-23 — "Master Directions on Interest Rate on Deposits" dated September 16, 2022”
📜 Read the original circular — full text as issued by RBI
RBI/2022-2023/117
DOR.SOG (SPE).REC.No 68/13.03.00/2022-23
September 16, 2022
All Scheduled Commercial Banks (including Regional Rural Banks)
All Small Finance Banks
All Payment Banks
All Local Area Banks
All Primary (Urban) Co-operative Banks/ DCCBs /State Cooperative Banks
Sir / Madam,
Master Directions on Interest Rate on Deposits
Please refer to the instructions on the Foreign Currency (Non-resident) Accounts (Banks) Scheme contained in Section 19 (h) of the Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 dated March 03, 2016 and Section 18 (h) of the Master Direction – Reserve Bank of India (Co-operative Banks – Interest Rate on Deposits) Directions, 2016 dated May 12, 2016 in terms of which, reference rates for arriving at the interest rates on FCNR (B) deposits shall be quoted / displayed by Foreign Exchange Dealers Association of India (FEDAI).
2. In terms of the guidance provided by RBI, the reference rates mentioned above are being quoted / displayed by Financial Benchmarks India Pvt. Ltd. (FBIL) with effect from January 31, 2022. In this regard, the relevant sections of both the Master Directions on Interest Rate on Deposits have been suitably modified.
3. Further, the instructions regarding eligibility for opening of savings account contained in Section 28 (h) and Section 27 (h) of the above-mentioned Master Directions (MDs) dated March 03, 2016 and May 12, 2016 , respectively, and item No. 6 in Schedule I of the two MDs have been modified to make them more explicit.
4. The relevant sections of the Master Directions as amended are indicated in the Annex .
5. All other instructions in this regard shall remain unchanged.
Yours faithfully,
(Santosh Kumar Panigrahy)
Chief General Manager
Encl: As above
ANNEX
[Encl. to circular DOR.SOG(SPE).REC.No 68/13.03.00/2021-22 dated Sep 16, 2022]
Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016
Section of MD
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-2023/117 · issued 16 Sep 2022. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12388&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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