PNB raises FCNR(B) dollar deposit interest rates up to 6.10%

Punjab National Bank has revised interest rates on its Foreign Currency Non-Resident (Bank) [FCNR(B)] dollar deposits, offering returns of up to 6.10% per annum for non-resident Indians (NRIs), as part of a broader trend of banks increasing foreign currency deposit rates.

Under the revised structure, the state-owned lender is offering 6.00% for deposits with maturities of 3 to less than 4 years, 6.05% for 4 to less than 5 years, and 6.10% for five-year tenors. The revised offering is aimed at helping NRIs earn competitive returns on foreign currency savings while retaining protection from exchange rate fluctuations.

For deposits of $1 million and above, the bank said preferential rates may be offered on a negotiated basis.

The FCNR(B) scheme allows NRIs to hold deposits in designated foreign currencies, enabling them to earn tax-efficient returns in India while avoiding currency conversion risk.

Revised USD FCNR(B) rates (PNB)

• 3 to < 4 years: 6.00%
• 4 to < 5 years: 6.05%
• 5 years: 6.10%

The move comes amid a broader wave of FCNR(B) rate increases across the banking sector, with lenders stepping up competition for stable NRI foreign currency inflows.

In recent weeks, several banks including ICICI Bank, Axis Bank, Kotak Mahindra Bank, and CSB Bank have also revised FCNR(B) deposit rates, particularly in the 3–5 year maturity segment, with some lenders offering rates in the 6–7% range for dollar deposits.

Bankers said the recent upward adjustments reflect tighter liquidity conditions and efforts to attract foreign currency deposits from NRIs, which help support overall funding stability and foreign exchange inflows.