Banks Offer Up to 7.50% Interest on FCNR(B) Deposits for NRIs and OCIs

Foreign Currency Non-Resident (Bank) deposits, or FCNR(B), have become more attractive to Non-Resident Indians (NRI) and Overseas Citizens of India (OCI) after the government announced in June that it would bear hedging costs on these deposits until September 30, 2026. This move has given banks the flexibility to offer higher interest rates to investors. Several banks are now offering FCNR(B) FDs with interest rates above 7%.

One of the highest FCNR(B) deposit interest rates is offered by ESAF Small Finance Bank and Ujjivan Small Finance Bank, both at 7.50% on a 5-year tenure for deposits below $500,000. AU Small Finance Bank offers its highest interest rate of 7.40% on USD-denominated FCNR(B) deposits of 3 to less than 4 years.

Other banks such as HDFC Bank and ICICI Bank are offering their highest FCNR(B) deposit interest rates at 6.25% on tenures of 3 years to 5 years. Bank of Baroda offers its highest FCNR(B) FD interest rate of 6.50% on tenures of 4 to 5 years.