Mumbai: Bandhan Bank has announced enhanced interest rates on its Foreign Currency Non-Resident (Bank) [FCNR(B)] deposit schemes, offering Non-Resident Indian (NRI) customers an attractive opportunity to earn competitive returns on US dollar-denominated deposits over the medium to long term.
Under the revised offering, the bank will provide an interest rate of 7.1% on FCNR(B) deposits of USD 1 million and above for tenures ranging from three to five years. For deposits of up to USD 1 million, the interest rate has been increased to 7% for the same tenure.
The bank said the enhanced rates are aimed at helping NRI customers secure stable and competitive returns while mitigating risks arising from potential exchange rate fluctuations, particularly during periods of rupee depreciation.
Commenting on the announcement, Rajinder Kumar Babbar, Executive Director and Chief Business Officer of Bandhan Bank, said the offering comes at a time when global investors are seeking greater stability and value from their overseas investments.
“We are pleased to introduce this attractive FCNR(B) deposit scheme for our NRI customers. It offers an opportunity to lock in competitive returns over the long term while effectively managing currency-related risks. At Bandhan Bank, we remain committed to providing tailored financial solutions that meet the evolving needs of our global customer base,” he said.
The revised deposit rates follow a recent initiative by the Reserve Bank of India, which introduced a USD-INR forex swap facility for banks on fresh FCNR(B) deposits. The facility applies to new FCNR(B) deposits with maturities ranging from a minimum of three years to a maximum of five years and is intended to encourage foreign currency inflows into the Indian banking system.
Bandhan Bank said the special FCNR(B) offer will be available for a limited period. The bank, which operates a network of nearly 2,000 branches across the country, has invited NRI customers to open non-resident accounts and take advantage of the enhanced deposit rates.
Industry observers note that the move is expected to appeal to overseas Indians seeking secure investment avenues that provide both attractive returns and protection against currency volatility, while also contributing to increased foreign currency inflows into India’s banking sector.
