SBI and Bank of Baroda Hike FCNR Deposit Rates to 6%

Indian Banks Raise Interest Rates on FCNR(B) Deposits to Attract Foreign Currency Inflows

State Bank of India (SBI) and Bank of Baroda (BoB) have increased interest rates on their Foreign Currency Non-Resident (Bank) or FCNR(B) deposits, offering Non-Resident Indians (NRIs) returns of up to 6 percent on US dollar deposits. This move follows the Reserve Bank of India's recent measures to attract foreign currency inflows.

The revised rates mark a significant increase from the earlier levels of around 3.35 percent on long-term US dollar deposits. The new maximum rate of 6 percent represents an increase of 265 basis points. This rate hike comes a day after HDFC Bank, Yes Bank, and AU Small Finance Bank (SFB) sharply increased interest rates on their FCNR deposits.

SBI's FCNR(B) Advantage Deposit Scheme