Ujjivan Small Finance Bank has raised the interest rate on dollar FCNR(B) deposits with tenures of three to five years to 7.5% per annum.
The lender said the revision is aimed at offering more competitive returns to NRIs while supporting India’s foreign exchange reserves and external sector.
Commenting on the revision, Hitendra Jha, Head – Retail Liabilities, TASC & TPP, Ujjivan Small Finance Bank, said the RBI’s policy initiative was “a significant step towards attracting stable foreign currency inflows into the banking system while reinforcing confidence among Non-Resident Indians.”
He added, “In alignment with this vision, Ujjivan SFB has enhanced the interest rate on USD FCNR(B) deposits for the three to five-year tenure to 7.5% per annum, making it one of the most competitive rates available in the industry.”
Separately, DBS Bank India has revised its FCNR(B) deposit rates with effect from July 1, offering up to 5.6% per annum on US dollar deposits with three to five-year tenures.
According to the bank, the deposits are fully repatriable, with both principal and interest payable in the designated foreign currency, helping reduce exposure to exchange-rate fluctuations. The offering also includes flexible tenures, digital account opening for eligible NRIs from overseas, and a mandatory one-year lock-in period during which premature withdrawals are not permitted.
The revisions come after the RBI announced policy measures to boost foreign currency deposits and strengthen capital inflows into the banking system.
