Indian Banks Increase FCNR(B) Interest Rates to Attract NRIs Amid Rupee Weakness

In response to the weakening Rupee, leading Indian banks are increasing interest rates on Foreign Currency Non-Resident (Bank) deposits, known as FCNR(B). The Reserve Bank of India has reintroduced a special swap window to facilitate this initiative, allowing banks to mobilize fresh deposits. Major banks like SBI, HDFC Bank, and Axis Bank are offering competitive rates, with some reaching as high as 6%. This move aims to attract non-resident Indians (NRIs) and stabilize the currency. Read on to learn more about the specific rates and terms offered by various banks.

By Narendra Chaudhary Jun 11, 2026, 13:41 IST

Overview of FCNR(B) Rate Increases

In an effort to draw in non-resident Indians (NRIs) and bolster the weakening Rupee, major Indian banks have announced an increase in interest rates for Foreign Currency Non-Resident (Bank) deposits, commonly known as FCNR(B). The Reserve Bank of India (RBI) has reintroduced a special swap window for FCNR(B) deposits, a strategy last utilized during the 2013 currency crisis. This facility enables banks to mobilize fresh deposits and exchange the funds with the RBI. The program will be available for deposits collected until September 30, 2026, while banks can utilize the swap option until October 16, 2026.

Leading Banks Adjust FCNR(B) Rates:

State Bank of India (SBI), a prominent public sector bank, currently offers the highest FCNR(B) interest rate of 4.4% for its 1 to 2-year schemes, effective from January 15, 2026. Punjab National Bank (PNB) has also revised its rates, providing competitive offerings in the same maturity range. Bank of Baroda is enhancing its interest rates for deposits maturing in 3 to 5 years, allowing customers to earn up to 6.00% on USD deposits. HDFC Bank has updated its FCNR(B) rates, with a maximum interest rate of 6% for tenures ranging from 3 to 5 years. Axis Bank has increased its rates by as much as 305 basis points, reaching 6% for deposits with maturities of three to five years. Additionally, ICICI Bank has adjusted its rates, presenting its highest FCNR(B) interest rates for tenures of 12 to 24 months.

Bank	Sector	FCNR(B) Highest Interest Rate	Tenure / Scheme	Key Highlight
State Bank of India (SBI)	Public Sector Bank	4.40%	1–2 years	Highest FCNR(B) rate offered in 1–2 year maturity bucket (effective Jan 15, 2026)
Punjab National Bank (PNB)	Public Sector Bank	6.10%	1–2 years	Updated FCNR(B) rates with highest offering in 1–2 year schemes
Bank of Baroda (BoB)	Public Sector Bank	Up to 6.00%	3–5 years	Higher rates offered in longer maturity bucket for USD deposits
HDFC Bank	Private Sector Bank	Up to 6.00%	3–5 years	Highest FCNR(B) rates available for 3–5 year deposits
Axis Bank	Private Sector Bank	Up to 6.00%	3–5 years	Raised FCNR(B) rates by up to 305 bps
ICICI Bank	Private Sector Bank	4.50%	12–24 months	Highest FCNR(B) rates offered in 12–24 month tenure