Bandhan Bank has raised interest rates on Foreign Currency Non-Resident (Bank) or FCNR(B) deposits, offering up to 7.1 per cent on US dollar-denominated deposits of $1 million and above for tenures of three to five years. The revised rates are part of a limited-period offer aimed at attracting higher foreign currency inflows from non-resident Indian (NRI) customers.
For deposits up to $1 million, the bank will offer an interest rate of 7 per cent for the same tenure. The move follows recent regulatory changes by the Reserve Bank of India (RBI), which introduced a US dollar–rupee forex swap facility for banks mobilising fresh FCNR(B) deposits with maturities between three and five years.
Bandhan Bank Executive Director and Chief Business Officer Rajinder Kumar Babbar said the revised offering allows NRIs to lock in competitive returns over longer durations while reducing exposure to currency fluctuations. The bank stated that the scheme will be available across its network of nearly 2,000 branches.
The RBI’s policy adjustment, including the temporary removal of the interest rate ceiling on such deposits until September 30, 2026, has encouraged banks to enhance their FCNR(B) offerings. Industry sources said the relaxation was introduced following requests from smaller lenders seeking greater flexibility in attracting overseas funds.
Several banks, including SBI, HDFC Bank, ICICI Bank and Axis Bank, currently offer up to 6 per cent on similar deposits, while some smaller lenders have increased rates further to remain competitive. With Bandhan Bank’s latest revision, industry competition for foreign currency deposits has intensified further in recent months.
