Data Alert
Banks raise 3- to 5-year FCNR(B) deposit rates by up to 487 bps
This story was originally published at 21:11 IST on 16 June 2026
Register to read our real-time news.Informist, Tuesday, Jun. 16, 2026
NEW DELHI – Indian banks have raised interest rates on foreign currency non-resident dollar-denominated bank deposits for tenures ranging from three to five years by as high as 487 basis points over the past week. The move by the banking industry was after the Reserve Bank of India introduced a concessional swap facility with an aim to attract foreign currency deposits, essentially making it cheaper to attract deposits in dollars than in the rupee. As per data compiled by Informist, DCB Bank Ltd. and Ujjivan Small Finance Bank offered the highest interest rate of 7.13% for three- to five-year deposits. Bandhan Bank Ltd. showed the highest increase of 487 bps compared with its prior rates on its five-year deposits.
The RBI has allowed banks to price these deposits as per their internal policies, but within the overall regulatory ceiling. Banks are allowed to offer up to 350 basis points higher than the benchmark rate of the foreign currency, suggesting a cap of around 7.13% based on the prevailing Secured Overnight Funding Rate for dollars. As per a median of estimates from 16 market participants polled by Informist, this swap facility is expected to attract inflows of about $43 billion.
The schemes offered by banks are set to end on Sept. 30. Bank-wise FCNR(B) deposit rates for dollar deposits across various tenures are as follows:
| Name | 3 to below 4 years | 4 to below 5 years | 5 years | |||||||
| Effective date | Revised | Previous | Rise (in bps) | Revised | Previous | Rise (in bps) | Revised | Previous | Rise (in bps) | |
| AU Small Finance Bank | 10-Jun-26 | 7.10 | 5.15 | 195 | 7.10 | 5.15 | 195 | 7.10 | 5.15 | 195 |
| Axis Bank (below $1 mln) | 11-Jun-26 | 6.00 | 3.25 | 275 | 6.00 | 2.95 | 305 | 6.00 | 2.95 | 305 |
| Axis Bank ($1 mln and above) | 11-Jun-26 | 6.00 | 3.25 | 275 | 6.00 | 2.95 | 305 | 6.00 | 2.95 | 305 |
| Bandhan Bank | 11-Jun-26 | 7.00 | 3.13 | 387 | 7.00 | 3.13 | 387 | 7.00 | 2.13 | 487 |
| Bank of Maharashtra | 13-Jun-26 | 6.00 | 3.10 | 290 | 6.05 | 3.00 | 305 | 6.10 | 3.00 | 310 |
| Bank of Baroda* | 16-Jun-26 | 6.00 | 5.50 | 50 | 6.10 | 5.75 | 35 | 6.25 | 6.00 | 25 |
| Canara Bank | 10-Jun-26 | 6.50 | 3.70 | 280 | 6.50 | 3.50 | 300 | 6.50 | 3.50 | 300 |
| Central Bank of India | 10-Jun-26 | 6.00 | 3.62 | 238 | 6.00 | 3.47 | 253 | 6.00 | 3.47 | 253 |
| City Union Bank | 10-Jun-26 | 7.10 | N.A. | -- | 7.10 | N.A. | -- | 7.10 | N.A. | -- |
| CSB Bank | 11-Jun-26 | 6.95 | 4.05 | 290 | 7.00 | 4.00 | 300 | 7.05 | 4.00 | 305 |
| DCB Bank (up to $350,000) | 12-Jun-26 | 7.13 | 3.50 | 363 | 7.13 | 3.50 | 363 | 7.13 | 3.50 | 363 |
| DCB Bank (above $350,000) | 12-Jun-26 | 7.13 | 3.50 | 363 | 7.13 | 3.50 | 363 | 7.13 | 3.50 | 363 |
| Equitas Small Finance Bank | 11-Jun-26 | 7.13 | N.A. | -- | 7.13 | N.A. | -- | 7.13 | N.A. | -- |
| ESAF Small Finance Bank (below $500,000) | 15-Jun-26 | 7.00 | 4.50 | 250 | 7.00 | 4.00 | 300 | 7.00 | 4.00 | 300 |
| ESAF Small Finance Bank ($500,000 and above) | 15-Jun-26 | 7.13 | 4.50 | 263 | 7.13 | 4.00 | 313 | 7.13 | 4.00 | 313 |
| Federal Bank ($500,000 to below $1 mln) | 11-Jun-26 | 6.00 | 3.75 | 225 | 6.00 | 3.50 | 250 | 6.00 | 3.60 | 240 |
| Federal Bank ($1 mln and above) | 11-Jun-26 | 6.25 | N.A. | -- | 6.25 | N.A. | -- | 6.25 | N.A. | -- |
| HDFC Bank | 10-Jun-26 | 6.00 | 3.65 | 235 | 6.00 | 3.40 | 260 | 6.00 | 3.40 | 260 |
| ICICI Bank | 11-Jun-26 | 6.00 | 3.00 | 300 | 6.00 | 2.90 | 310 | 6.00 | 2.90 | 310 |
| IDBI Bank (up to $1 mln) | 11-Jun-26 | 6.00 | 3.25 | 275 | 6.05 | 3.15 | 290 | 6.10 | 3.15 | 295 |
| IDBI Bank (above $1 mln up to $5 mln) | 11-Jun-26 | 6.05 | 3.25 | 280 | 6.10 | 3.20 | 290 | 6.15 | 3.20 | 295 |
| IDBI Bank (above $5 mln) | 11-Jun-26 | 6.10 | 3.35 | 275 | 6.15 | 3.35 | 280 | 6.20 | 3.35 | 285 |
| IDFC FIRST Bank (below $1 mln) | 16-Jun-26 | 6.75 | 4.25 | 250 | 6.75 | 4.40 | 235 | 6.75 | 4.40 | 235 |
| IDFC FIRST Bank (above $1 mln) | 16-Jun-26 | 6.75 | 4.00 | 275 | 6.75 | 4.00 | 275 | 6.75 | 4.00 | 275 |
| Indian Bank (up to $1 mln) | 12-Jun-26 | 6.00 | 3.50 | 250 | 6.25 | 3.40 | 285 | 6.50 | 3.40 | 310 |
| Indian Bank* (above $1 mln up to $3 mln) | 12-Jun-26 | 5.60 | 3.50 | 210 | 5.85 | 3.40 | 245 | 6.10 | 3.40 | 270 |
| Indian Bank* (above $3 mln) | 12-Jun-26 | 5.50 | 3.50 | 200 | 5.75 | 3.40 | 235 | 6.00 | 3.40 | 260 |
| IndusInd Bank | 15-Jun-26 | 6.60 | 3.70 | 290 | 6.65 | 3.60 | 305 | 6.75 | 3.60 | 315 |
| J&K Bank (below $1 mln) | 15-Jun-26 | 6.00 | 3.55 | 245 | 6.05 | 3.30 | 275 | 6.10 | 3.30 | 280 |
| J&K Bank (above $1 mln) | 15-Jun-26 | 6.15 | 3.55 | 260 | 6.20 | 3.30 | 290 | 6.25 | 3.30 | 295 |
| Karnataka Bank | 11-Jun-26 | 6.50 | N.A. | -- | 6.75 | N.A. | -- | 7.00 | N.A. | -- |
| Karur Vysya Bank | 10-Jun-26 | 7.00 | 2.63 | 437 | 7.00 | 2.63 | 437 | 7.00 | 2.63 | 437 |
| Kotak Mahindra Bank** (below $1 mln) | 11-Jun-26 | 6.00 | 3.40 | 260 | 6.00 | 3.20 | 280 | 6.00 | 3.00 | 300 |
| Kotak Mahindra Bank** ($1 mln and above) | 11-Jun-26 | 6.15 | 3.40 | 275 | 6.15 | 3.20 | 295 | 6.15 | 3.00 | 315 |
| Punjab National Bank (below $1 mln) | 11-Jun-26 | 6.00 | 3.24 | 276 | 6.05 | 2.95 | 310 | 6.10 | 3.05 | 305 |
| RBL Bank | 12-Jun-26 | 6.25 | 4.25 | 200 | 6.30 | 4.25 | 205 | 6.35 | 4.55 | 180 |
| South Indian Bank | 11-Jun-26 | 6.50 | 4.00 | 250 | 6.00 | 3.75 | 225 | 5.50 | 3.90 | 160 |
| State Bank of India* (up to $1 mln) | 10-Jun-26 | 5.25 | 3.35 | 190 | 5.50 | 2.95 | 255 | 5.75 | 3.05 | 270 |
| State Bank of India* (above $1 mln) | 10-Jun-26 | 5.50 | 3.35 | 215 | 5.75 | 2.95 | 280 | 6.00 | 3.05 | 295 |
| Tamilnad Mercantile Bank | 12-Jun-26 | 7.00 | 3.90 | 310 | 7.00 | 3.60 | 340 | 7.00 | 3.50 | 350 |
| UCO Bank | 11-Jun-26 | 6.00 | 3.00 | 300 | 6.25 | 3.65 | 260 | 6.25 | 3.65 | 260 |
| Ujjivan Small Finance Bank (regular) | 12-Jun-26 | 7.13 | 4.00 | 313 | 7.13 | 4.00 | 313 | 7.13 | 4.00 | 313 |
| Ujjivan Small Finance Bank (more than $100,000) | 12-Jun-26 | 7.13 | 4.00 | 313 | 7.13 | 4.00 | 313 | 7.13 | 4.00 | 313 |
| YES Bank | 11-Jun-26 | 6.50 | 4.00 | 250 | 6.55 | 3.75 | 280 | 6.60 | 3.75 | 285 |
Source: Banks' websites, Informist.
*These peak rates have been introduced as part of a special scheme.
**The size of deposits in the categories has changed post revision of rates.
N.A. – Prior period data not available
End
US$1 = INR 94.56
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Compiled by Aaryan Khanna
Filed by Rajeev Pai
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