Bandhan Bank increases FCNR(B) deposit rates to 7.1% after RBI forex swap move

Bandhan Bank announced that the interest rate on deposits up to $1 million has risen to 7 percent, according to a press release.
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RUPAK DE CHOWDHURI

Bandhan Bank, a private‑sector lender, announced on Friday that it has raised the interest rates on its Foreign Currency Non‑Resident (Bank) [FCNR(B)] deposits aimed at non‑resident Indians.

For USD‑denominated FCNR(B) deposits of $1 million or more, the bank will now pay 7.1 percent interest for terms of three to five years, as stated in its release.

Deposits of up to $1 million will earn a 7 percent interest rate, the bank confirmed.

“We are delighted to launch this appealing FCNR(B) deposit product for our NRI clients, who are looking for stability and value in their foreign investments. It enables them to secure competitive yields over an extended period while reducing exposure to currency fluctuations,” remarked Rajinder Kumar Babbar, Executive Director and Chief Business Officer of Bandhan Bank.

The launch follows the RBI’s introduction of a USD‑Rupee forex swap facility for banks on newly mobilised FCNR(B) deposits with tenures of three to five years.

The central bank’s initiative seeks to boost foreign‑currency inflows into the domestic banking sector and alleviate liquidity pressures.

Bandhan Bank noted that the updated FCNR(B) rates give NRIs a chance to secure attractive returns over a medium‑ to long‑term period while limiting currency risk, especially if the rupee weakens.

Published on June 19, 2026