Banks revise FCNR rates

New Delhi: SBI, ICICI Bank and IDFC First Bank have raised interest rates on foreign currency non-resident (FCNR) deposits in response to the Reserve Bank's relaxation last week to shore up forex inflows.

India's largest private-sector lender HDFC Bank has also revised the rates on foreign currency (non-resident) deposits. However, it clarified that the revision is not in response to the latest RBI move and it will take a call on revising the rates further going forward.

The largest public-sector lender State Bank of India (SBI) has revised the FCNR rates on US dollar in the range of 2.85-3.25 per cent per annum on various tenure US dollar deposits with effect from July 10, 2022. SBI has hiked the rate on one-year tenure FCNR USD deposits to 2.85 from 1.80 per cent earlier. For deposits of 3-4 years and 5 years, it has been hiked to 3.10 per cent and 3.25 per cent, respectively. The previous rates were 2.30 per cent and 2.45 per cent. ICICI Bank has revised upwards FCNR by 0.15 per cent on deposits of higher than and equal to $350,000 for 12-24 months tenure to 3.50 per cent.

The new rate has come into effect from July 13, 2022. HDFC Bank revised FCNR on USD deposits for tenure of 1 year to less than 2 years at 3.35 per cent with effect from July 9, 2022.