The move is aimed at attracting foreign currency deposits from Indians living abroad. Experts believe that under this deposit scheme, about 60 to 70 billion US dollars of foreign capital is likely to come to India.
New FCNR Scheme: Several major banks, including the State Bank of India (SBI) and ICICI Bank, on Thursday launched a new Foreign Currency Non-Resident (FCNR-B) deposit scheme with bumper interest rates for non-resident Indians (NRIs). This increase in NRI fixed deposit (FD) interest rates comes just days after the Reserve Bank of India (RBI) announced the opening of a foreign currency swap window for banks until September 30.
Foreign capital expected to inflow $60-70 billion
This move by the Reserve Bank effectively relieves banks of the currency hedging costs incurred on these deposits and gives them room to increase deposit rates. This move is aimed at attracting foreign currency deposits from Indians living abroad. Experts believe that approximately $60 to $70 billion of foreign capital is expected to flow into India under this deposit scheme.
Which bank will offer NRIs how much return?
- ICICI Bank stated on its website that it is offering 6.50 percent interest on NRI FDs from June 11.
- SBI has launched a new “SBI Advantage FCNR (B)” deposit scheme in US dollars with a 3- to 5-year term. This scheme will have a one-year lock-in period. According to SBI, 3- to 4-year deposits of more than US$1 million will earn 5.50 percent interest, 4- to 5-year deposits will earn 5.75 percent interest, and 5-year deposits will earn 6 percent interest.
- Bank of Baroda has also increased interest rates on 3- to 5-year deposits in US dollars, British pounds, euros, Australian dollars, and Canadian dollars under its new FCNR (B) scheme. Under the new rates, a maximum interest rate of 6 percent will be offered on US dollar deposits, 4.75 percent on British pound and Australian dollar deposits, 5.15 percent on Canadian dollar deposits, and 3.75 percent on euro deposits.
- Kotak Mahindra Bank said that effective June 11, FCNR(B) deposits with a maturity period of 3-5 years will earn 6 percent interest on deposits less than US$1 million and 6.15 percent on deposits above that amount.
- HDFC Bank also increased the interest rate on 3-5 year FCNR(B) deposits to 6 percent effective June 10. This rate will apply to deposit accounts opened between June 10 and September 30, 2026.
- AU Small Finance Bank has also increased the maximum interest rate on FCNR(B) deposits in US dollars from 5.15 percent to 7.10 percent annually. The new rates are effective from June 10, 2026.
Why FCNR-B Accounts Are Popular Among NRIs
FCNR(B) accounts allow NRIs to deposit money in foreign currency in India. The interest and principal earned on these accounts are protected against exchange rate fluctuations, making them popular among NRI investors.
Read More: Ethnic footwear: These ethnic footwear can complete your festive look with suits and sarees.
The post New FCNR Scheme: These banks have launched the FCNR scheme for NRIs, offering bumper returns on foreign currency deposits. first appeared on informalnewz.