Home › Circulars › RBI/2024-25/94

RBI hikes FCNR(B) deposit rate ceilings by 150 bps

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2024-25/94 · issued 06 Dec 2024 · ~2 min read

Quick answerRBI raised FCNR(B) deposit rate ceilings from December 6, 2024: 1-3 year deposits now capped at overnight ARR plus 400 bps (up from 250 bps), and 3-5 year deposits at ARR plus 500 bps (up from 350 bps). This relaxation is valid until March 31, 2025.

What changed

RBI increased the interest rate ceiling on fresh FCNR(B) deposits effective December 6, 2024. For deposits of 1 year to less than 3 years, the ceiling rose from overnight ARR plus 250 bps to plus 400 bps. For deposits of 3 years and above up to 5 years, the ceiling rose from overnight ARR plus 350 bps to plus 500 bps.

What it means for you

Banks can now offer higher rates on FCNR(B) deposits, making them more attractive to non-resident depositors. This move aims to boost foreign currency inflows and support the balance of payments. The higher ceilings are temporary, available only until March 31, 2025, so banks should act quickly to mobilize deposits.

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 product rates to reflect the new ceilings immediately.
Communicate the revised rates to branch networks and marketing teams to attract NRIs.
Monitor deposit mobilization against the March 31, 2025 deadline to maximize inflows.
Ensure compliance with the overnight ARR benchmarks for each currency.

Who it affects

Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Local Area Banks, Payments Banks, Primary Urban Co-operative Banks, District Central Co-operative Banks, State Co-operative Banks

❓ Common questions

Regulatory timeline

Stated effective date effective December 6, 2024
Decoded by BankPulse 2026-06-18 02:41 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST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 new ceiling for 1-3 year FCNR(B) deposits?

The ceiling is now overnight Alternative Reference Rate (ARR) for the respective currency/swap plus 400 basis points, up from the earlier plus 250 bps.

Until when are these higher ceilings valid?

The relaxation is available only for fresh deposits raised from December 6, 2024, until March 31, 2025.

Which banks are covered by this circular?

All scheduled commercial banks, including regional rural banks, small finance banks, local area banks, payments banks, and all co-operative banks (urban, district, and state) are covered.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #93: DoR.SPE.REC.No.51/13.03.00/2024-2025 — "Interest Rates on Foreign Currency (Non-resident) Accounts (Banks) [FCNR(B)] Deposits" dated December 6, 2024”

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 762 kb ) Interest Rates on Foreign Currency (Non-resident) Accounts (Banks) [FCNR(B)] Deposits RBI/2024-25/94 DoR.SPE.REC.No.51/13.03.00/2024-2025 December 06, 2024 All Scheduled Commercial Banks (including Regional Rural Banks) All Small Finance Banks All Local Area Banks All Payments Banks All Primary (Urban) Co-operative Banks/ DCCBs /State Cooperative Banks Madam / Sir, Interest Rates on Foreign Currency (Non-resident) Accounts (Banks) [FCNR(B)] Deposits Please refer to paragraph 2 of the Statement on Developmental and Regulatory Policies issued as a part of the Bi-monthly Monetary Policy Statement for 2024-25 dated December 06, 2024 read with instructions regarding interest rates on FCNR(B) deposits contained in Section 19 of the Master Direction (MD) on Interest Rate on Deposits dated March 03, 2016 and Section 18 of the Master Direction on Co-operative Banks - Interest Rate on Deposits dated May 12, 2016 , as amended from time to time. 2. In terms of clause (g) of the above sections of the MDs, ibid, interest rates on FCNR(B) deposits are subject to ceilings of Overnight Alternative Reference Rate (ARR) for the respective currency/swap, plus 250 basis points for deposits of 1 year to less than 3 years maturity and overnight ARR plus 350 basis points for deposits of 3 years and above and up to 5 years maturity. It has been decided to increase the interest rates ceiling on fresh FCNR(B) deposits raised by the banks with effect from December 06, 2024 as under: Period of Deposit Ceiling Rate 1 year to less than 3 years Overnight Alternative Reference Rate for the respective currency/ Swap plus 400 basis points 3 years and above upto and including 5 years Overnight Alternative Reference Rate for the respective currency/ Swap plus 500 basis points 3. The above relaxation shall be available till March 31, 2025. Yours faithfully, (Veena Srivastava) Chief General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/94 · issued 06 Dec 2024. 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=12753&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.