India’s top financial banking services providers, including State Bank of India (SBI), Bank of India (BoI), and Yes Bank, have raised interest rates on Foreign Currency Non-Resident (Bank) deposits in response to recent measures by the Reserve Bank of India. These banks are now offering Non-Resident Indians (NRIs) returns of up to 6.6% on US dollar deposits.
SBI has introduced its FCNR(B) Advantage Deposit Scheme, where deposits up to $1 million can earn 5.25% to 5.75% for different tenures. For deposits exceeding $1 million, SBI offers up to 6% interest for a five-year term. Premature withdrawal is not allowed in the first year, with reduced interest rates for early withdrawals thereafter.
Bank of Baroda has also revised its FCNR(B) rates, providing opportunities for customers to earn up to 6% on US dollar deposits. The bank’s Executive Director, Beena Vaheed, mentioned that the recent RBI measures have enabled banks to enhance their FCNR(B) offerings for NRIs, aiming to strengthen the Indian rupee.
Yes Bank leads with the highest FCNR(B) rates among major lenders, offering up to 6.60% annually on US dollar deposits. The revised rates, effective immediately, provide attractive returns for different deposit tenures. The recent regulatory relaxations by the central bank are expected to boost foreign currency deposits from NRIs, supporting India’s external financing and foreign exchange inflows.
