Higher Rates
Banks hike FCNR(B) rates on 3- to 5-year deposits to attract foreign flows
This story was originally published at 21:28 IST on 11 June 2026
Register to read our real-time news.Informist, Thursday, Jun. 11, 2026
By J. Navya Sruthi and Cassandra Carvalho
MUMBAI – Several Indian banks have raised interest rates on foreign currency non-resident dollar-denominated bank deposits for tenures raging from three to five years this 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.
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?sed 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 | ||||||
| Revised | Previous | Rise (in bps) | Revised | Previous | Rise (in bps) | Revised | Previous | Rise (in bps) | |
| AU Small Finance Bank | 7.10 | 5.15 | 195 | 7.10 | 5.15 | 195 | 7.10 | 5.15 | 195 |
| Axis Bank ($1 mln and above) | 6.00 | 3.25 | 275 | 6.00 | 2.95 | 305 | 6.00 | 2.95 | 305 |
| Axis Bank (below $1 mln) | 6.00 | 3.25 | 275 | 6.00 | 2.95 | 305 | 6.00 | 2.95 | 305 |
| Bank of Baroda | 5.50 | 3.35 | 215 | 5.75 | 2.95 | 280 | 6.00 | 3.05 | 295 |
| Central Bank of India | 6.00 | 3.62 | 238 | 6.00 | 3.47 | 253 | 6.00 | 3.47 | 253 |
| CSB Bank | 6.95 | 4.05 | 290 | 7.00 | 4.00 | 300 | 7.05 | 4.00 | 305 |
| Federal Bank ($500,000 to below $1 mln) | 6.00 | 3.75 | 225 | 6.00 | 3.50 | 250 | 6.00 | 3.60 | 240 |
| Federal Bank ($1 mln and above) | 6.25 | N.A. | -- | 6.25 | N.A. | -- | 6.25 | N.A. | -- |
| HDFC Bank | 6.00 | 3.65 | 235 | 6.00 | 3.40 | 260 | 6.00 | 3.40 | 260 |
| ICICI Bank | 6.00 | 3.00 | 300 | 6.00 | 2.90 | 310 | 6.00 | 2.90 | 310 |
| IDBI Bank* (upto $1 mln) | 6.00 | 3.25 | 275 | 6.05 | 3.15 | 290 | 6.10 | 3.15 | 295 |
| IDBI Bank* (above $1 mln upto $5 mln) | 6.05 | 3.25 | 280 | 6.10 | 3.20 | 290 | 6.15 | 3.20 | 295 |
| IDBI Bank*(above $5 mln) | 6.10 | 3.35 | 275 | 6.15 | 3.35 | 280 | 6.20 | 3.35 | 285 |
| Karur Vysya Bank | 7.00 | 2.63 | 437 | 7.00 | 2.63 | 437 | 7.00 | 2.63 | 437 |
| Kotak Mahindra Bank** ($1 mln and above) | 6.15 | 3.40 | 275 | 6.15 | 3.20 | 295 | 6.15 | 3.00 | 315 |
| Kotak Mahindra Bank** (below $1 mln) | 6.00 | 3.40 | 260 | 6.00 | 3.20 | 280 | 6.00 | 3.00 | 300 |
| Punjab National Bank (below $1 mln) | 6.00 | 3.24 | 276 | 6.05 | 2.95 | 310 | 6.10 | 3.05 | 305 |
| South Indian Bank | 6.50 | N.A. | -- | 6.00 | N.A. | -- | 5.50 | N.A. | -- |
| State Bank of India* (above $1 mln) | 5.50 | 3.35 | 215 | 5.75 | 2.95 | 280 | 6.00 | 3.05 | 295 |
| State Bank of India* (upto $1 mln) | 5.25 | 3.35 | 190 | 5.50 | 2.95 | 255 | 5.75 | 3.05 | 270 |
| UCO Bank | 6.00 | N.A. | -- | 6.25 | N.A. | -- | 6.25 | N.A. | -- |
| YES Bank | 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
Edited by Deepshikha Bhardwaj
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