economictimes.indiatimes.com ·
New Fcnr Usd Deposits Offering Up to 6 5 Interest Rate Bank of Baroda Indian Overseas Bank and Others Launch Schemes for Nris Ocis
News Analysis — AI Analysis
Original analysis generated by News Analysis. This is our own commentary on the story, not the publisher's article text.
Following recent measures by the RBI to boost foreign currency inflows, several banks—including Canara Bank, Federal Bank, and Indian Overseas Bank—have launched attractive Foreign Currency Non-Resident (Bank) or FCNR(B) deposit schemes. These new US dollar deposit options offer interest rates up to 6.50% p.a. for tenures of three to five years, with the government bearing hedging costs until September 30, 2026.
Key points
- Multiple banks (Canara Bank, Federal Bank, IOB, etc.) have introduced new FCNR(B) schemes targeting NRIs and OCIs.
- The interest rates offered range up to 6.50% p.a., depending on the specific bank and tenure.
- All schemes generally require a lock-in period of one year from the deposit date.
- A key benefit is that both principal and earned interest can be transferred abroad without restrictions.
- The government will cover hedging costs for 3 to 5-year FCNR(B) deposits until September 30, 2026.
Claims assessed
- VerifiableCanara Bank offers up to a 6.50% interest rate on USD deposits with tenures of 3 to 5 years.
- VerifiableFederal Bank's 'FCNR Max Deposit Scheme' provides an interest rate of 6.25% for 3 to 5 year tenures.
- VerifiableBank of Baroda offers varying rates (e.g., 6.00% for 3 years, 6.50% for 5 years) on USD deposits.
- VerifiableIndian Overseas Bank launched a special FCNR(B) scheme offering 6.50% interest rate per annum to NRIs.
Missing context
The article does not specify the current market conditions or compare these deposit rates against other available investment options (e.g., mutual funds, fixed deposits) to help readers assess if this is the best use of their capital.
Topic context
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The full article is on the original publisher site.
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