Banks Hike FCNR Deposit Rates for NRIs Following RBI Hedging Cost Cover
نظرة سريعة
- Several Indian banks have increased interest rates on Foreign Currency Non-Resident (FCNR-B) deposits for NRIs, OCIs, and POIs.
- This follows the RBI's announcement to cover hedging costs for new 3 to 5-year deposits until September 2026, with banks like Axis Bank offering up to 6%.
ملخص مُنشأ بالذكاء الاصطناعي
لماذا يهم
Banks are increasing interest rates on Foreign Currency Non-Resident (FCNR-B) deposits for NRIs, OCIs, and POIs. This follows the RBI's announcement to cover hedging costs for new 3 to 5-year deposits until September 2026. Several banks have revised their rates upwards.
Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (POIs) looking to earn higher returns on their foreign currency deposits may find new opportunities as several banks have increased interest rates of their Foreign Currency Non-Resident (Bank) FCNR(B) deposits.
Several banks such as Punjab National Bank (PNB), HDFC Bank, ICICI Bank, Axis Bank, AU Small Finance Bank have increased their FCNR(B) deposits on select tenures after the Reserve Bank of India (RBI) announced that the government would cover the hedging costs for new 3 to 5-year FCNR(B) deposits until September 30, 2026.
What is an FCNR(B) account?
An FCNR(B) account allows NRIs, OCIs and POIs to maintain fixed deposits in foreign currencies, offering tax-free interest, easy repatriation of funds and protection against exchange rate fluctuations.
Public and private sector banks offer FCNR(B) in currencies such as USD, GBP, EUR, AUD, CAD and JPY.
In this write-up, we will take you through revised $US FCNR(B) interest rates from prominent banks and small finance banks.
Revised Axis Bank FCNR(B) interest rates
After the rate revision, Axis Bank is offering its highest interest rate of 6% in 3 to 5 years FCNR(B) schemes. The increased rates are applicable from June 11, 2026.
Maturity Period
USD (Below 1 million)
USD (1 million & above)
1 year < 2 years
4.00%
4.00%
2 years < 3 years
3.50%
3.50%
3 years < 4 years
6.00%
6.00%
4 years < 5 years
6.00%
6.00%
5 years
6.00%
6.00%
Revised Punjab National Bank (PNB) FCNR(B) interest rates
Punjab National Bank is offering its highest FCNR(B) interest rate of 6.1% on its 5-year tenure. The bank was earlier paying an interest of 3.05% in the same scheme. In its 4 years to less than 5 year FCNR(B) deposits, the bank has increased the rate from 2.95% to 6.05%. The increased rates are applicable from June 11, 2026
FCNR Deposit w.e.f. 11.06.2026 Period 1 yrs < 2 yrs 2 yrs < 3 yrs 3 yrs < 4 yrs 4 yrs < 5 yrs 5 Yrs. only S.No. Currency Existing Revised Existing Revised Existing Revised Existing Revised Existing Revised 01.06.2026 11.06.2026 01.06.2026 11.06.2026 01.06.2026 11.06.2026 01.06.2026 11.06.2026 01.06.2026 11.06.2026 1 USD* 4.99 4.99 3.47 3.47 3.24 6 2.95 6.05 3.05 6.1
Revised ICICI Bank FCNR(B) interest rates
After the revision, ICICI Bank is offering its highest interest rate of 6% on tenures of equal to or higher than 36 months to up to 60 60 months. The increased rates are applicable from June 11, 2026
Tenure USD 12 months to < 24 months 3.85% >= 24 months to < 36 months 3.85% >= 36 months to < 48 months 6.00% >= 48 months to < 60 months 6.00% 60 Months 6.00%
Equitas Small Finance Bank FCNR(B) interest rates
Equitas Small Finance Bank is offering its highest FCNR(B) interest rate of 7.13% on tenures of equal to higher than 36 months to up to 60 months. The increased rates are applicable from June 11, 2026
Tenure
Less than USD 500,000
USD 500,000 and above
12 months to ≤ 18 months
5.10% p.a.
5.15% p.a.
> 18 months to < 36 months
4.55% p.a.
4.55% p.a.
≥ 36 months to < 48 months
7.13% p.a.
7.13% p.a.
≥ 48 months to ≤ 60 months
7.13% p.a.
7.13% p.a.
AU Small Finance Bank revises FCNR(B) interest rates
AU Small Finance Bank (AU SFB) is offering its highest FCNR(B) interest rate of 7.10% in 3 years to less than 4 years of scheme. Earlier, it was offering a 5.15% interest rate on the same scheme. New FCNR(B) interest rates are applicable from June 10, 2026.
Tenure/ Currency
< USD 500,000
>= USD 500,000
1 Yr to < 2 Yrs
5.10%
5.15%
2 Yrs to < 3 Yrs
4.55%
4.55%
3 Yrs to < 4 Yrs
7.10%
7.10%
4 Yrs to < 5 Yrs
7.00%
7.00%
5 Yrs
7.00%
7.00%
Note: All rates have been taken from respective banks’ websites as of 12:36 pm, June 12, 2026.
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أسئلة مفتوحة
- Will the increased rates attract a significant volume of new deposits?
- How will these rate hikes impact the overall liquidity in the Indian banking system?
- Are there any specific conditions or limitations on the RBI's hedging cost coverage?
- What are the tax implications for NRIs, OCIs, and POIs on these FCNR-B deposits?
