RBI Removes Rate Caps on FCNR-B Deposits and NRE Accounts
The Reserve Bank of India (RBI) has temporarily lifted the rate caps on foreign currency non-resident bank (FCNR-B) deposits and non-resident external (NRE) accounts, allowing banks to offer higher interest rates to attract long-term deposits. This move is expected to benefit banks facing challenges in building long-term liabilities and maintaining liquidity buffers.