Highest FCNR (B) rates: Public vs private banks
Indian residents abroad can take advantage of a limited window to invest in high-yield foreign currency deposits. The RBI announced in June that it would cover hedging costs for 3-5 year FCNR (B) deposits, prompting private banks to raise their interest rates. As the deadline approaches on August 31, 2026, major banks are offering competitive rates for NRIs, OCIs and PIOs.
Private sector banks are leading the pack with IDFC FIRST Bank and IndusInd Bank offering 6.75% on US dollar deposits. ICICI Bank, HDFC Bank and Axis Bank follow with 6.25%. On the public sector side, Central Bank of India provides the highest rate at 6.60%, with Bank of Baroda, Canara Bank and UCO Bank offering 6.50%, while Punjab National Bank leads at 6.45%.
These high rates are possible due to the government bearing the hedging costs until the deadline. After August 31, banks may lower their rates, so NRIs, OCIs and PIOs should consider making their investments soon to benefit from these elevated FCNR (B) deposit interest rates.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
