The revised cut-off applies to FCNR-B deposits with maturities of three to five years, replacing September 30, 2026. Banks also have less time to execute the related swaps with RBI: the deadline is now September 11, 2026, instead of October 16, 2026.

The decision follows FCNR-B deposit inflows of $52.30 billion between June 8 and August 13, 2026. RBI linked the shorter window to the strong response and foreign exchange mobilisation. However, the separate swap arrangements covering external commercial borrowings and overseas foreign currency borrowings remain open until December 31, 2026.

The earlier cut-off could encourage NRIs to place deposits before the window closes. The report puts current interest rates at roughly 6–7.50 per cent and says banks may return to around 3 per cent after August 31. These are expectations, not confirmed future rates. Bankers estimate another $15 billion could arrive over the next two fortnights, lifting inflows to about $67 billion by August-end.

Bank of Baroda chief economist Madan Sabnavis suggested RBI may already have met its intended inflow target. Karur Vysya Bank treasury head V Rama Chandra Reddy viewed the decision as an adjustment towards managing liquidity and balance-sheet effects, rather than a policy reversal. A private-bank economist cautioned that the resulting rupee liquidity might not all find lending opportunities.