SBI, ICICI, Other Banks Hike FCNR Deposit Rates

• Several banks launched or revised FCNR(B) deposit schemes on Thursday with higher interest rates for NRIs.

• ICICI Bank is offering 6.50% on NRI fixed deposits from June 11.

• SBI’s new FCNR(B) scheme offers up to 6% on USD deposits for 5-year tenure above $1 million.

Several banks, including ICICI and SBI, on Thursday launched a new Foreign Currency Non-Resident (FCNR (B)) deposit scheme offering higher interest rates for Non-Resident Indians.

The NRI fixed deposit interest rate hikes came within days of the RBI announcing a foreign currency swap window for banks till September 30, thus effectively absorbing the currency hedging cost that banks had to bear on such deposits and leaving room for banks to raise deposit rates.

The move is aimed at attracting foreign currency deposits from Non-Resident Indians (NRIs), and experts believe that about $60-70 billion foreign capital could flow in under the deposit scheme.

Following this, ICICI Bank, on its website, said it is offering 6.50% interest on NRI fixed deposits effective June 11.

State Bank of India (SBI) announced a new SBI Advantage FCNR(B) deposit scheme available in USD for a 3-5 year tenure with a lock-in period of 1 year.

Deposits above $1 million for 3-4 years will attract 5.5% interest, while 4-5 years (5.75% interest), and those with 5 years tenure will attract 6% interest.

Bank of Baroda (BoB) said it is offering higher interest rates for deposits in the 3-to-5-year maturity bucket across major foreign currencies, including the US Dollar (USD), British Pound Sterling (GBP), Euro, Australian Dollar (AUD) and Canadian Dollar (CAD) under the new FCNR (B) Deposit Scheme.

Customers would earn up to 6% on USD deposits, 4.75% on GBP and AUD deposits, 5.15% on CAD deposits and 3.75% on Euro deposits with effect from June 11.

Kotak Mahindra Bank on its website said that FCNR (B) deposit interest rates, with effect from June 11, will be 6% for 3-5 year deposits less than $1 million, and 6.15% for deposits more than $1 million.

Private sector HDFC Bank had on Wednesday hiked the FCNR(B) deposit rate for 3 to 5 years tenure to 6% effective June 10. This will be applicable to deposits booked between June 10, 2026, and September 30, 2026.

Also, AU Small Finance Bank (AU SFB) has hiked FCNR (B) deposit rates with the peak USD deposit rate increasing from 5.15% p.a. to 7.10%, effective June 10, 2026.