By Saurabh Garg, founder·6 min read·Published 2026-08-07·Updated 2026-09-09

Short answer: The FCNR(B) swap window closed a month early. RBI said on 14 August 2026 that the facility would cover only deposits mobilised till 31 August 2026, not 30 September, and on 25 August it pulled the NRE and FCNR(B) rate ceiling relaxation forward to the same date. Banks brought in USD 127,226 million through FCNR(B) deposits by 31 August. Money sitting in an NRO account never qualified.

The FCNR(B) Window Closed on 31 August 2026, a Month Before the Date Everyone Was Quoting

This page said in August that the window ran to 30 September 2026. It does not. On 14 August the Reserve Bank said the swap facility would cover only deposits mobilised till 31 August 2026, and on 25 August it moved the interest rate relaxation to the same date. Banks brought in USD 127,226 million through FCNR(B) deposits by the close. Money sitting in an NRO account never qualified for any of it.

Corrected on 9 September 2026 against the RBI's own notifications and press releases. The August version of this page relied on trade and news reporting and carried the 30 September date after the RBI had already moved it.

What actually happened, in order

On 8 June 2026 the RBI opened a concessional US dollar to rupee swap facility for banks. A bank taking a fresh FCNR(B) deposit of three to five years could pass the currency risk to the RBI at close to no cost, and pay that saving to the depositor instead. That is what put dollar deposit rates on the shelf at levels NRIs had not seen in years.

On 17 June the RBI lifted the interest rate ceilings that would otherwise have capped those deposits, and exempted the money from CRR and SLR so banks had a reason to chase it. Both reliefs were written to run until 30 September 2026.

On 14 August the RBI closed the deposit leg early. Press release 2026-2027/900 says it plainly: "the Swap facility for FCNR(B) deposits will be available only for deposits mobilized till August 31, 2026." Banks could still execute the swap itself with the RBI until 11 September 2026, but the deposits behind those swaps had to be in by 31 August. The separate scheme for external commercial borrowings and overseas foreign currency borrowings "will continue to be open till December 31, 2026, as hitherto."

On 25 August the RBI aligned the deposit rules with that closure. Two sets of amendment directions, issued the same day, one per class of bank:

Both came into force with immediate effect. From 1 September 2026 a fresh FCNR(B) deposit of three to five years, or a fresh NRE term deposit of three years and above, sits under the ordinary ceilings again. We covered that change on its own in the note on the rate caps coming back.

What came in

Press release 2026-2027/1024, dated 2 September 2026, gives the provisional position reported by authorised dealer banks for inflows till 31 August 2026:

Channel Amount
FCNR(B) deposits USD 127,226 million
Overseas foreign currency borrowings USD 5,260 million
External commercial borrowings USD 3,891 million
Total USD 136,377 million

The RBI calls these provisional, pending final reporting, accounting and reconciliation. For comparison, the 14 August release put total inflows at USD 56,846 million as of 13 August. The bulk of the money arrived in the closing weeks, which is what an early closing date tends to produce.

The line that catches property owners

Your NRO account was never in this.

An FCNR(B) deposit under the facility had to be funded from an NRE balance or a fresh remittance from abroad. NRO funds did not qualify, and the NRE rate relaxation carried the same exclusion for transfers out of NRO.

That is the account an India property owner's money actually lands in. Rent credited by a tenant goes to NRO. Sale proceeds go to NRO. Both arrive after tax has been deducted. Moving that money out of NRO is its own process with its own annual limit of USD 1 million and its own forms, which we set out in repatriating property sale proceeds from an NRO account and in the 15CA and 15CB guide, now Forms 145 and 146. An owner who read the headline rates in July and assumed the rent balance could chase them was reading about a different account.

What this does not change

Nothing about owning property in India moved. Buying, the two-property repatriation route, TDS when you sell, the USD 1 million NRO limit: all of it stands where it stood in May. This was a deposit measure aimed at India's external balance, and the RBI has said so.

Deposits already booked inside the window keep the rate they were booked at. The change bites on what you book now, not on what you hold.

This is a report on what the RBI did. It is not advice on where to put your money, and a decision about a deposit or a property needs your own adviser.

FAQ

When did the FCNR(B) window close? The swap facility covered deposits mobilised till 31 August 2026. Banks could execute the swap with the RBI till 11 September 2026, but the deposit had to be in by 31 August. The earlier date of 30 September was withdrawn on 14 August 2026.

Are the higher NRE and FCNR(B) rates still available? Not on fresh deposits. The interest rate ceilings returned on 1 September 2026 after the RBI moved the end of the relaxation from 30 September to 31 August on 25 August 2026.

Can I use money from my NRO account for an FCNR(B) deposit? No. The deposit had to be funded from an NRE balance or a fresh remittance from overseas, and the NRE ceiling relaxation excluded transfers from NRO accounts.

How much did banks raise? Provisionally USD 127,226 million through FCNR(B) deposits till 31 August 2026, and USD 136,377 million across all three channels including overseas foreign currency borrowings and external commercial borrowings.

Is anything still open? The scheme for external commercial borrowings and overseas foreign currency borrowings runs till 31 December 2026. That is a corporate borrowing route, not a retail deposit an individual can book.

66 MG Road newsdesk

Sources

Information on this page is as on 2026-09-09. Rules, rates, deadlines and government portals change without notice, so verify against the official source before you act. This page is for information only. It is not tax or legal advice, and it is not a substitute for a qualified adviser who knows your position.