Blitz Bureau
NEW DELHI:India’s top financial banking services providers — State Bank of India (SBI), Bank of India (BoI), and Yes Bank — have sharply raised interest rates on Foreign Currency Non-Resident (Bank) or FCNR(B) deposits. This follows the Reserve Bank of India’s recent measures to attract foreign currency inflows, with lenders now offering Non-Resident Indians (NRIs) returns of up to 6.6 per cent on US dollar deposits.
The banks have revised their FCNR(B) deposit rates, a significant increase from earlier levels of around 3.35 per cent on long-term US dollar deposits.
The country’s largest lender, SBI, has launched its FCNR(B) Advantage Deposit Scheme, under which deposits of up to $1 million will earn 5.25 per cent for tenures of three years to less than four years, 5.50 per cent for four years to less than five years and 5.75 per cent for five years.
For deposits above $1 million, SBI is offering up to 6 per cent interest for a five-year tenure.
According to SBI, premature withdrawal is not permitted during the first year of FCNR(B) deposits under the new scheme. Withdrawals after one year but before three years will earn 3.50 per cent interest for the period the deposit remained with the bank.
Similarly, Bank of Baroda has revised FCNR(B) rates across major foreign currencies, including the US dollar, British pound sterling, euro, Australian dollar and Canadian dollar.
