The Reserve Bank of India has unveiled the Third Amendment Directions for Commercial Banks, focusing on interest rates for deposits. The amendment temporarily lifts the interest rate ceiling on new FCNR(B) deposits.
RBI Introduces Third Amendment Directions for Commercial Banks
On August 25, 2026, the Reserve Bank of India (RBI) issued the Third Amendment Directions (RBI/2026-27/243) regarding interest rates on deposits for Commercial Banks.
This amendment updates previous Directions from November 28, 2025, and revised on June 17, 2026, and allows for the temporary suspension of the interest rate ceiling applicable to fresh FCNR(B) deposits.
This adjustment is aimed at enhancing the ability of Commercial Banks to attract and retain a variety of deposits amidst evolving economic conditions.
Banking sector lawyers should take note of these changes as they may influence deposit strategies and client relationships in commercial banking.
Citations
- RBI/2026-27/243 Reserve Bank of India