Synopsis: RBI has opened a three-month window for NRI dollar fixed deposits at unusually high interest rates. This article lists down the FD rates of major banks for different tenure and deposit amounts.
The Reserve Bank of India (RBI) has lately announced certain special steps that have been taken to increase foreign currency inflows through bearing the hedging cost on new FCNR (B) deposits having maturity period between three to five years till September 30, 2026. After taking these steps, many banks started providing revised rates of FCNR (B) deposits especially for long periods. This has provided the advantage of earning high interest rates to NRIs, with the rate being up to 7.10% on US dollar deposits.
What Are FCNR(B) Deposits?
Foreign Currency Non-Resident (Bank), or FCNR(B) deposits, are term deposits which are available to NRIs and OCIs from Indian banks. FCNR(B) deposits can be made in the specified foreign currencies, including US Dollar (USD), Pound Sterling (GBP), Euro (EUR), Japanese Yen (JPY), Australian Dollar (AUD), and Canadian Dollar (CAD). Unlike traditional fixed deposits, FCNR deposits are held in foreign currency. Thus, investors are not affected by exchange rate movements between the Indian rupee and foreign currency of choice
Key Features of FCNR(B) Deposits
- Available exclusively to NRIs and OCIs.
- Deposits can be maintained in major foreign currencies, including USD, GBP, EUR, JPY, AUD, and CAD.
- Minimum deposit tenure is one year, while the maximum tenure is five years.
- Principal and interest are fully repatriable.
- Interest earned on FCNR(B) deposits is generally exempt from tax in India for eligible NRIs.
- Depositors do not bear the risk of rupee depreciation since both the principal and interest are paid in the foreign currency in which the deposit was made.
1. AU Small Finance Bank FCNR(B) Rates (Effective June 10, 2026)
2. HDFC Bank FCNR(B) Rates (Effective June 2026)
Note: FCNR deposits having a tenor of three to five years will be locked in for one year only. The lock-in period will apply to deposits made from June 10, 2026 to September 30, 2026.
3. ICICI Bank FCNR(B) Rates (Effective June 11, 2026)
4. Central Bank of India FCNR(B) Rates (Effective June 10, 2026)
5. Punjab National Bank FCNR Rates (Effective 11 June 2026)
Also Read: 7 Major Fund Houses That Capped Large Investments in Gold ETFs Amid a Surge in Gold Demand in 2026
6. South Indian Bank FCNR(B) Rates (Effective June 11, 2026)
7. Axis Bank FCNR(B) Rates (Effective June 11, 2026)
8. Kotak Mahindra Bank FCNR(B) Rates (Effective June 11, 2026)
Why FCNR(B) Deposits Are Attracting Attention
The FCNR(B) deposits have become highly attractive due to the certain special policies introduced by the RBI to increase the inflow of foreign currencies. The following advantages are offered:
- Deposits are maintained in foreign currency, reducing exchange-rate risk.
- Principal and interest are fully repatriable.
- Interest earned is generally exempt from tax in India for eligible NRIs.
- Revised rates are significantly higher than those available before the RBI’s latest move.
Which Bank Offers the Highest FCNR(B) Rate?
AU Small Finance Bank offers the highest FCNR(B) interest rate among the banks reviewed at 7.10% for USD deposits with a tenure of three to four years. South Indian Bank follows with a rate of 6.50% for three- to four-year USD deposits. Kotak Mahindra Bank offers up to 6.15% on deposits of USD 1 million and above, while Punjab National Bank provides up to 6.10% on five-year FCNR(B) deposits.
Written By Ameet S
