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YES Bank raises USD FCNRB rates up to 6.60 percent for NRI deposits, following RBI relaxations on FCNRB reserves.
The move by YES Bank comes days after the RBI announced regulatory relaxations to encourage banks to mobilise foreign currency deposits from non-resident Indians (NRIs).
YES Bank has revised interest rates on its US dollar-denominated Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, offering rates of up to 6.60% per annum for non-resident Indian (NRI) customers.
The revised rates came into effect on June 11, 2026, and are aimed at providing NRIs with more attractive returns on their foreign currency savings while helping the bank attract overseas deposits.
Under the revised structure, YES Bank is offering an interest rate of 6.50% on USD FCNR(B) deposits with tenures ranging from three years to less than four years. Deposits with maturities between four years and less than five years will earn 6.55%, while the highest rate of 6.60% is being offered on five-year deposits.
FCNR(B) deposits allow NRIs to maintain fixed deposits in foreign currencies, helping them earn interest without being exposed to exchange rate fluctuations between the deposit currency and the Indian rupee.
According to the bank, the revision reflects its focus on providing competitive investment options for NRIs seeking stable returns on their foreign currency holdings.
Earlier, Bloomberg report citing Yes bank’s spokesperson said that Yes Bank hiked the deposit rate to 7.1 per cent.
Other Banks Too Hike After RBI’s Move
HDFC Bank increased the deposit rate by 235-265 basis points to 6 per cent, while AU Small Finance Bank raised to 7.1 per cent on three-year deposits and 7 per cent on five-year deposits, the Reuters reported.
The move comes days after the RBI announced regulatory relaxations to encourage banks to mobilise foreign currency deposits from non-resident Indians (NRIs). On June 8, the central bank exempted fresh FCNR(B) deposits from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements.
The exemption applies to fresh FCNR(B) deposits with maturities ranging from three to five years that are mobilised until September 30, 2026.
The RBI said the decision is linked to its newly announced US Dollar-Rupee swap facility, which is designed to encourage banks to bring in more foreign currency funds. By exempting these deposits from reserve requirements, banks can deploy a larger portion of the funds, making it easier to offer higher interest rates to NRI depositors.
The central bank had first announced the measure as part of a broader package unveiled by RBI Governor Sanjay Malhotra on June 5 to boost foreign currency inflows into the country.
About the Author
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the I…Read More
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