FCNR (B) deposits allow Non-Resident Indians (NRIs) to park foreign currency earnings in India while earning interest without exposure to exchange rate fluctuations.
The revision follows the Centre’s decision to lower hedging costs for select FCNR (B) deposits. In June, the Reserve Bank of India (RBI) said the government will bear hedging costs on three-to-five-year FCNR (B) deposits until September 30, 2026.
Following the move, both HDFC Bank and ICICI Bank now offer an interest rate of 6.25% on eligible three-to-five-year FCNR (B) deposits.
HDFC Bank FCNR (B) interest rates
HDFC Bank is offering 6.25% interest on FCNR (B) deposits with tenures of 3 years to less than 4 years, 4 years to less than 5 years, and 5 years.
The bank said FCNR (B) deposits booked for 3-5 years between June 10, 2026, and September 30, 2026, will be subject to a one-year lock-in period.
For deposits booked through net banking, HDFC Bank said requests are processed within two working days, excluding Saturdays, Sundays, public holidays in India and international currency holidays. The applicable interest and forex rates will be those prevailing on the date the deposit is processed, not when the request is submitted.
HDFC Bank FCNR (B) interest rates across tenures
ICICI Bank FCNR (B) interest rates
ICICI Bank is offering 6.25% interest on FCNR (B) deposits of ₹4 lakh and above for tenures of more than 36 months to less than 48 months, more than 48 months to less than 60 months, and 60 months.The bank said no interest will be payable on premature withdrawal of FCNR (B) deposits with an original tenure of 12 months to less than 36 months before completion of 12 months. After 12 months, interest will be paid at the applicable rate on the date of deposit booking for the period the deposit remained with the bank, with no penalty.
For FCNR (B) deposits with an original tenure of more than 36 months to less than 60 months, the bank said a 12-month lock-in period applies. If such deposits are withdrawn after the lock-in period, including partial withdrawals, interest will be paid at the applicable rate on the date of deposit booking for the period the deposit remained with the bank, after deducting a 1% penalty.
ICICI Bank FCNR (B) interest rates across tenures
