The Reserve Bank of India has released the Second Amendment Directions for Rural Co-operative Banks regarding the interest rate on deposits. This amendment updates previous guidelines and temporarily removes the ceiling on interest rates for fresh FCNR(B) deposits.
RBI Releases Second Amendment Directions for Rural Co-operative Banks
On August 25, 2026, the Reserve Bank of India (RBI) issued the Second Amendment Directions (RBI/2026-27/248) pertaining to interest rates on deposits for Rural Co-operative Banks.
The amendment, which updates the previous Directions dated November 28, 2025 (revised on June 17, 2026), allows for a temporary suspension of the interest rate ceiling on fresh Foreign Currency Non-Resident (FCNR(B)) deposits.
This revision reflects the RBI's ongoing efforts to adjust financial regulations to respond to changing economic conditions and promote better banking practices among regional institutions.
Due to the adjustable interest rates, practitioners in the banking sector should review these amendments carefully as they may influence deposit strategies and customer relations in rural banking.
Citations
- RBI/2026-27/248 Reserve Bank of India