The revised offerings are aimed at attracting long-term foreign currency deposits from Non-Resident Indians (NRIs), particularly in the three-to-five-year tenure category.
IDBI Bank has revised its FCNR(B) deposit rates effective June 20, and is now offering up to 6.60% per annum on dollar-denominated deposits across the three-to-five-year maturity bucket. Deposits up to $1 million will earn 6.50%, deposits above $1 million and up to $5 million will earn 6.55%, while deposits exceeding $5 million will earn 6.60% per annum.
SBM Bank India has also announced revised FCNR deposit rates effective June 11, offering up to 7.1% interest on dollar FCNR deposits for tenures ranging from three to five years.
The bank said the rates are among the highest currently available in the FCNR deposit market. In addition to USD deposits, SBM Bank India is also offering FCNR deposit options in currencies including GBP, EUR and JPY with varying rates.
South Indian Bank has revised its FCNR(B) USD deposit rate to 6.50% per annum for deposits with maturities between three and five years. The bank said the revision follows the RBI’s Forex Swap Facility for fresh FCNR(B) deposits, which allows banks to swap eligible deposits with the RBI in US dollars and manage currency risk more efficiently.
The RBI’s special FCNR(B) scheme is available for eligible deposits accepted up to September 30, while the swap facility window will remain open till October 16.
Banking industry participants expect the revised FCNR(B) rates to support higher NRI deposit inflows and provide overseas Indians with attractive opportunities to earn improved returns on foreign currency savings.
First Published: Jun 23, 2026 4:13 PM IST
