AU Small Finance Bank has revised its Foreign Currency Non-Resident (FCNR-B) deposit rates, offering returns of up to 7.10 per cent on select tenures as banks respond to the Reserve Bank of India’s recent initiatives aimed at boosting foreign currency deposits from non-resident Indians (NRIs).
The revised rates are among the most competitive in the FCNR deposit segment. The move follows the RBI’s decision to introduce a concessional swap facility for fresh FCNR(B) deposits with maturities ranging from three to five years, enabling banks to lower hedging costs and pass on the benefits to depositors through higher interest rates.
Under the updated structure, AU Small Finance Bank is offering up to 7.10 per cent interest on eligible FCNR(B) deposits, marking a notable increase from previous rates. The bank aims to strengthen its NRI deposit base by providing more attractive returns amid growing competition for overseas funds.
The RBI’s latest measures come at a time when FCNR(B) inflows have moderated, prompting efforts to encourage fresh deposits from overseas Indians. The initiative is expected to help banks attract additional foreign currency deposits and strengthen foreign exchange inflows into the country.
FCNR(B) deposits allow NRIs to maintain fixed deposits in designated foreign currencies while protecting their investments from exchange rate fluctuations. The deposits also offer easy repatriation and remain a popular investment avenue for overseas Indians seeking stable returns.
With the latest revision, AU Small Finance Bank has positioned itself among the lenders offering some of the highest FCNR(B) deposit rates in the market, reflecting the banking sector’s increasing focus on attracting NRI investments through competitive deposit products.
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