Data Alert
Banks raise 3- to 5-year FCNR(B) deposit rates by up to 487 bps
This story was originally published at 21:29 IST on 18 June 2026
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NEW DELHI – Indian banks have raised interest rates on foreign currency non-resident dollar-denominated bank deposits for tenors ranging from three to five years by as much as 487 basis points over the past week. The move by the banking industry has come after the Reserve Bank of India introduced a concessional swap facility with the aim of attracting foreign currency deposits, essentially bringing the cost of raising dollar deposits at par with the cost of rupee deposits.
This swap facility is expected to attract inflows of about $43 billion, according to the median of an Informist Poll of 16 economists. As per data compiled by Informist, DCB Bank Ltd., Ujjivan Small Finance Bank Ltd., and Equitas Small Finance Bank Ltd. have 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 five-year deposits.
The RBI has allowed banks to price these deposits as per their internal policies. Wednesday, the central bank temporarily withdrew the interest rate ceiling on such deposits until Sept. 30. Until Wednesday, banks were allowed to offer up to 350 basis points higher than the benchmark rate of the foreign currency, suggesting a cap of around 7.13?sed on the prevailing Secured Overnight Funding Rate for dollars.
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) | 13-Jun-26 | 6.00 | 3.25 | 275 | 6.00 | 2.95 | 305 | 6.00 | 2.95 | 305 |
| Axis Bank ($1 mln and above) | 13-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 |
| Bank of India (below $100,000)* | 12-Jun-26 | 6.00 | 3.35 | 265 | 6.05 | 3.35 | 270 | 6.25 | 3.15 | 310 |
| Bank of India (above $100,000)* | 12-Jun-26 | 6.25 | 3.35 | 290 | 6.30 | 3.35 | 295 | 6.50 | 3.15 | 335 |
| 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 (up to $500,000)*# | 16-Jun-26 | 6.25 | 6.00 | 25 | 6.25 | 6.00 | 25 | 6.25 | 6.00 | 25 |
| Federal Bank ($500,000 to below $1 mln)*# | 16-Jun-26 | 6.25 | 6.00 | 25 | 6.25 | 6.00 | 25 | 6.25 | 6.00 | 25 |
| Federal Bank ($1 mln and above)*# | 16-Jun-26 | 6.25 | 6.25 | 0 | 6.25 | 6.25 | 0 | 6.25 | 6.25 | 0 |
| 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 |
| Indian Overseas Bank | 15-Jun-26 | 6.50 | 3.15 | 335 | 6.50 | 3.15 | 335 | 6.50 | 3.15 | 335 |
| 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 & Sind Bank | 15-Jun-26 | 6.70 | 3.50 | 320 | 6.75 | 3.50 | 325 | 6.80 | 3.50 | 330 |
| 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.
***The bank did not offer FCNR(B) deposits for the 3-5 year tenures prior to this.
#Bank has raised FCNR(B) rates for second time since the swap window was announced.
N.A. – Prior period data not available
End
US$1 = INR 94.33
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Aaryan Khanna
Edited by Rajeev Pai
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