Data Alert
Banks raise 3- to 5-year FCNR(B) deposit rates by upto 487 bps
This story was originally published at 22:30 IST on 12 June 2026
Register to read our real-time news.Informist, Friday, Jun. 12, 2026
MUMBAI – 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 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. As per data compiled by Informist, DCB Bank Ltd. offered the highest interest rate of 7.13% for three- to five-year deposits. Bandhan Bank Ltd. offered the highest increase of 487 bps on its five-year deposit rates compared to its prior rates.
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. Motilal Oswal expects an inflow of upto $50 billion from this deposit swap facility.
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 (below $1 mln) | 6.00 | 3.25 | 275 | 6.00 | 2.95 | 305 | 6.00 | 2.95 | 305 |
| Axis Bank ($1 mln and above) | 6.00 | 3.25 | 275 | 6.00 | 2.95 | 305 | 6.00 | 2.95 | 305 |
| Bandhan Bank | 7.00 | 3.13 | 387 | 7.00 | 3.13 | 387 | 7.00 | 2.13 | 487 |
| Bank of Baroda | 5.50 | 3.35 | 215 | 5.75 | 2.95 | 280 | 6.00 | 3.05 | 295 |
| Canara Bank | 6.50 | 3.70 | 280 | 6.50 | 3.50 | 300 | 6.50 | 3.50 | 300 |
| Central Bank of India | 6.00 | 3.62 | 238 | 6.00 | 3.47 | 253 | 6.00 | 3.47 | 253 |
| City Union Bank | 7.10 | N.A. | -- | 7.10 | N.A. | -- | 7.10 | N.A. | -- |
| CSB Bank | 6.95 | 4.05 | 290 | 7.00 | 4.00 | 300 | 7.05 | 4.00 | 305 |
| DCB Bank(up to $350,000) | 7.13 | 3.50 | 363 | 7.13 | 3.50 | 363 | 7.13 | 3.50 | 363 |
| DCB Bank (above $350,000) | 7.13 | 3.50 | 363 | 7.13 | 3.50 | 363 | 7.13 | 3.50 | 363 |
| Federal Bank ($1 mln and above) | 6.25 | N.A. | -- | 6.25 | N.A. | -- | 6.25 | N.A. | -- |
| Federal Bank ($500,000 to below $1 mln) | 6.00 | 3.75 | 225 | 6.00 | 3.50 | 250 | 6.00 | 3.60 | 240 |
| 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 (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 |
| IDBI Bank (upto $1 mln) | 6.00 | 3.25 | 275 | 6.05 | 3.15 | 290 | 6.10 | 3.15 | 295 |
| Indian Bank* (above $3 mln) | 5.50 | 3.50 | 200 | 5.75 | 3.40 | 235 | 6.00 | 3.40 | 260 |
| Indian Bank* (above $1 mln upto $3 mln) | 5.60 | 3.50 | 210 | 5.85 | 3.40 | 245 | 6.10 | 3.40 | 270 |
| Indian Bank (upto $1 mln) | 6.00 | 3.50 | 250 | 6.25 | 3.40 | 285 | 6.50 | 3.40 | 310 |
| IndusInd Bank | 6.60 | 3.70 | 290 | 6.65 | 3.60 | 305 | 6.75 | 3.60 | 315 |
| Karnataka Bank | 6.50 | N.A. | -- | 6.75 | N.A. | -- | 7.00 | N.A. | -- |
| 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 | 4.00 | 250 | 6.00 | 3.75 | 225 | 5.50 | 3.90 | 160 |
| 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 |
| Tamilnad Mercantile Bank | 7.00 | 3.90 | 310 | 7.00 | 3.60 | 340 | 7.00 | 3.50 | 350 |
| 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
US$1 = INR 95.11
Reported by Cassandra Carvalho and J. Navya Sruthi
Edited by Deepshikha Bhardwaj
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