Bandhan Bank increases FCNR(B) deposit rates

Private sector lender Bandhan Bank on Friday said it has increased interest rates on Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits for non-resident Indian customers. The bank will now offer an interest rate of 7.1 per cent on US dollar-denominated FCNR(B) deposits of USD 1 million and above for tenures ranging from 3 to 5years, according to a company release.

For deposits up to USD 1 million, the interest rate has increased to 7 per cent, the bank said in a release.

“We are pleased to introduce this attractive FCNR(B) deposit offering for our NRI customers at a time when they are seeking stability and value in their overseas investments. This offering allows them to lock in competitive returns for a longer duration while effectively mitigating currency-related risks,” said Rajinder Kumar Babbar, executive director and chief business officer of Bandhan Bank. The offering comes in the wake of the RBI’s decision to introduce a USD-Rupee forex swap facility for banks on fresh FCNR(B) deposits mobilised for a minimum tenor of three years and up to five years. The central bank’s move aims to encourage foreign currency inflows into the domestic banking system and ease pressure on liquidity. Bandhan Bank said the revised FCNR(B) rates provide NRIs an opportunity to lock in competitive returns over a medium- to long-term horizon while reducing exposure to currency fluctuations, particularly in the event of rupee depreciation.