Mumbai, August 18, 2026 (Yes Punjab News)
Indian banks are stepping up efforts to attract foreign currency non-resident (FCNR-B) deposits by offering higher interest rates after the Reserve Bank of India (RBI) brought forward the deadline for its special dollar-rupee swap facility by a month.
The RBI had initially kept the swap window open until September 30 but has now shortened the deadline to August 31, citing the “encouraging response” to the facility and saying the required foreign exchange inflows had already been mobilised.
The move has prompted banks to intensify their campaigns targeting non-resident Indian (NRI) customers, with some lenders raising FCNR-B deposit rates and others highlighting the limited window through their digital platforms.
Private sector lender Axis Bank has raised the interest rate on FCNR-B deposits of more than $1 million to 6.40 per cent for three- to five-year tenures, effective August 17. The rate was earlier 6.25 per cent, after being increased from 6 per cent when the special scheme was introduced. For deposits below $1 million, the bank is offering 6.25 per cent.
Federal Bank has also raised its FCNR-B deposit rate to 6.40 per cent from 6.25 per cent. The revised rate applies to US dollar deposits of $500,000 to less than $3 million for three- to five-year tenures.
For deposits of $3 million and above, the bank offers 6.25 per cent for three-year deposits and 6.40 per cent for four- and five-year tenures.
HDFC Bank and ICICI Bank have also launched prominent campaigns for NRI customers, including countdown timers on their websites showing the remaining time to avail themselves of the attractive FCNR-B deposit rates.
The RBI’s special USD-INR forex swap facility has generated $52.3 billion in foreign exchange inflows until mid-August, according to the latest figures.
The central bank introduced the facility on June 8 covering FCNR-B deposits, external commercial borrowings and overseas foreign currency borrowings. The initiative was aimed at attracting NRI deposits and encouraging banks and state-owned companies to access relatively cheaper dollar funding.
The schemes had attracted nearly $41 billion in foreign exchange inflows by the end of July, underscoring the strong response that subsequently prompted the RBI to advance the closing date.
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