The revision covers deposits in the 3 to 5-year maturity bucket and is aimed at strengthening the bank’s NRI banking franchise by offering higher returns on foreign currency savings.
FCNR(B) deposits allow non-resident Indians to park foreign currency funds in India without exchange rate risk, with interest payable in the same currency.
Revised USD FCNR(B) rates
| Tenor | USD FCNR(B) interest rate |
| 3 to < 4 years | 6.50% |
| 4 to < 5 years | 6.55% |
| 5 years | 6.60% |
(Source: YES Bank)
The bank said customers can access the revised rates through branches and relationship managers for opening FCNR(B) accounts.
The move comes amid a broader trend of banks adjusting FCNR(B) deposit rates following recent policy signals and measures aimed at encouraging foreign currency inflows into the banking system.
Several lenders have been recalibrating returns in the 3–5 year segment to attract overseas deposits.
Earlier, Bank of Baroda launched a special FCNR(B) deposit scheme for NRIs offering higher interest rates across major foreign currencies, including up to 6% on US dollar deposits with five-year maturity. It also introduced differentiated rates across currencies such as GBP, CAD, AUD and EUR.
Other banks, including HDFC Bank, Punjab National Bank, Central Bank of India, Karur Vysya Bank and AU Small Finance Bank, have also revised FCNR(B) dollar deposit rates in recent weeks, particularly in the 3–5 year maturity segment.
Market participants said the coordinated rise in FCNR(B) rates reflects competitive positioning among lenders to attract stable foreign currency inflows from NRIs, even as global interest rate dynamics remain relatively elevated.
YES BANK said the revised structure is part of its broader strategy to enhance its international banking offerings, including through its International Banking Unit at GIFT City and overseas representative presence.
