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Banks Hike NRI Deposit Rates for USD Inflows
10 Jun
Summary
- Several Indian banks increased FCNR(B) USD deposit rates.
- HDFC Bank and AU Small Finance Bank offer up to 7% and 7.10%.
- This move follows RBI's forex swap facility to attract funds.
Several Indian banks have announced substantial increases in their Foreign Currency Non-Resident (FCNR-B) deposit rates for US dollar accounts. This action has been prompted by recent measures taken by the Reserve Bank of India (RBI), including a forex swap facility designed to absorb hedging costs and encourage foreign currency inflows.
Participating banks like HDFC Bank, Punjab National Bank (PNB), Central Bank of India, Karur Vysya Bank, and AU Small Finance Bank have revised their rates upwards for deposits with maturities typically ranging from three to five years. HDFC Bank has raised its rates to 6% for 3-5 year deposits, while PNB offers between 6% and 6.10%.
AU Small Finance Bank has emerged with one of the highest offerings, increasing its USD deposit rate to 7.10% per annum. Karur Vysya Bank has also made a significant adjustment, hiking its rates by 437 basis points to 7% for 3-5 year USD deposits. These revised rates are expected to attract more foreign currency into the Indian banking system.
