Several banks, including SBI and ICICI launched FCNR schemes for NRIs

Several major Indian banks, including the State Bank of India (SBI) and ICICI Bank, launched new Foreign Currency Non-Resident (FCNR-B) deposit schemes offering attractive interest rates for Non-Resident Indians (NRIs) on Thursday. This hike in NRI fixed deposit (FD) interest rates follows the Reserve Bank of India’s (RBI) recent announcement of a foreign currency swap window for banks, valid until September 30.

Inflow of $60–70 billion in foreign capital expected

The RBI’s move has effectively relieved banks of the currency hedging costs associated with these deposits, creating room for them to raise deposit rates. The initiative aims to attract foreign currency deposits from Indians living abroad. Experts believe that this deposit scheme could lead to an inflow of approximately $60–70 billion in foreign capital into India.

Which bank offers what returns to NRIs?

• ICICI Bank announced on its website that it is offering an interest rate of 6.50% on NRI FDs starting June 11.
• SBI has launched a new ‘SBI Advantage FCNR (B)’ deposit scheme denominated in US dollars, with tenures ranging from 3 to 5 years. This scheme includes a one-year lock-in period. According to SBI, deposits exceeding $1 million will earn 5.50% interest for 3–4 year tenures, 5.75% for 4–5 years, and 6% for 5-year deposits.
• Bank of Baroda has also raised interest rates on 3-to-5-year deposits denominated in US dollars, British pounds, euros, Australian dollars, and Canadian dollars under its new FCNR (B) scheme. Under the new rates, the maximum interest offered will be 6 percent on US dollar deposits, 4.75 percent on British pound and Australian dollar deposits, 5.15 percent on Canadian dollar deposits, and 3.75 percent on Euro deposits.
• Kotak Mahindra Bank announced that, effective June 11, FCNR(B) deposits with tenures of 3–5 years will earn 6 percent interest for amounts below USD 1 million and 6.15 percent for amounts exceeding that figure.
• HDFC Bank has also raised the interest rate on 3–5 year FCNR(B) deposits to 6 percent, effective June 10. This rate applies to deposit accounts opened between June 10 and September 30, 2026.
• AU Small Finance Bank has also increased the maximum interest rate on US dollar FCNR(B) deposits from 5.15 percent to 7.10 percent per annum. The new rates are effective from June 10, 2026.

Why FCNR(B) Accounts Are Popular Among NRIs

FCNR(B) accounts allow NRIs to deposit funds in India in foreign currencies. Since both the principal amount and the interest earned on these accounts are protected against exchange rate fluctuations, they are considered popular among NRI investors.