Debasis Mohapatra
Bengaluru, 22 June 2026
After the relaxation of Reserve Bank of India’s rules on Foreign Currency Non-Resident (FCNR) Deposit Rates, it is raining good news for NRIs (Non-Resident Indians).
That’s because Indian banks have started offering interest rate up to 7 per cent on FCNR deposits.
RBI has relaxed deposit norms, effective from June 17 to September 30, 2026, aiming at attracting foreign currency inflows. Given the persistent selling by FIIs, and rising import cost, higher FCNR deposit is expected to improve domestic liquidity and supporting the rupee. Rupee has been one of the worst performing currencies in Asia with near 7% fall since the beginning of this year.
To cash in the relaxed norms, many banks have made their deposit rates attractive. For instance, Bandhan Bank is offering the highest FCNR rate among major lenders with interest rates of 7.1% on US dollar deposits of $1 million and above for tenures of three to five years. Deposits below $1 million earn 7% in the bank.
Similarly, CSB Bank has also significantly raised rates on FCNR deposits. It is offering 6.95% for deposits with maturities of three to four years, 7% for four to five years and 7.05% on five-year deposits.
Kotak Mahindra Bank offers up to 6.15% for deposits exceeding $1 million and 6% for smaller deposits.
Similarly, ICICI Bank and Axis Bank have also revised their rates to 6% across the three-to-five-year maturity segment. Bank of Baroda is offering up to 6% on five-year deposits.
These deposit rates are 200-300 basis points higher than earlier interest rates offered on such deposits.
