YES Bank Raises FCNR Deposit Rate to 6.60% After SBI, BoB, HDFC Bank & Other Major Lenders Revise NRI Returns

Several Indian banks, including YES Bank, State Bank of India (SBI), Bank of Baroda (BoB), HDFC Bank, AU Small Finance Bank & more have revised interest rates on Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits following recent measures by the Reserve Bank of India (RBI) aimed at attracting foreign currency inflows.

YES Bank, SBI, BoB, HDFC & Other Major Banks Raise FCNR(B) Deposit Returns for NRIs

Among the lenders, YES Bank is now offering up to 6.60 per cent interest on US dollar-denominated FCNR deposits for Non-Resident Indians (NRIs), making it one of the highest rates currently available in the segment.

YES Bank Offers Up to 6.60% on USD FCNR Deposits

YES Bank has revised its FCNR(B) deposit rates with effect from June 11, 2026. Under the new structure, NRI customers can earn 6.50 per cent interest on US dollar deposits with maturities ranging from three years to less than four years.

For deposits with tenures between four years and less than five years, the bank is offering 6.55 per cent interest. The highest return of 6.60 per cent is available on deposits with a five-year maturity.

The bank said the revised rates are intended to provide NRIs with attractive returns on their foreign currency savings while strengthening foreign currency deposit mobilisation.

What Are FCNR(B) Deposits?

FCNR(B) deposits allow Non-Resident Indians to maintain fixed deposits in foreign currencies such as the US dollar. Since both the principal amount and interest remain in the foreign currency, depositors are protected from fluctuations in the Indian rupee.

These deposits are often preferred by NRIs seeking stable returns without taking exchange-rate risk on their investments.

Latest FCNR Rates of Major Banks

YES Bank is not the only lender revising its FCNR deposit offerings. Several banks have announced higher rates in recent weeks as competition intensifies to attract overseas deposits.

HDFC Bank has increased its FCNR deposit rates by 235-265 basis points, taking returns on select US dollar deposits to 6 per cent.

AU Small Finance Bank has raised rates to 7.1 per cent on three-year FCNR deposits and 7 per cent on five-year deposits, making it one of the most competitive offerings in the market.

Meanwhile, State Bank of India and Bank of Baroda have also revised their FCNR(B) deposit rates, offering NRIs returns of up to 6 per cent on US dollar deposits.

RBI Measures Boost Foreign Currency Inflows

The recent rate revisions come after the Reserve Bank of India introduced measures aimed at encouraging foreign currency inflows into the banking system. Banks have responded by enhancing FCNR deposit rates to attract NRI funds and improve foreign currency liquidity.

Industry observers believe the higher returns could encourage overseas Indians to increase deposits in India, particularly at a time when global investors are looking for secure and relatively stable foreign-currency investment options.