Equitas Small Finance Bank raises FCNR deposit rates to 7.1%; shares trade in red

Shares of Equitas Small Finance Bank are in focus after the bank announced a revision in FCNR deposits. The shares traded in red with 0.9% losses

Equitas Small Finance Bank Limited, one of the largest Small Finance Banks, has announced an upward revision on its FCNR (B) deposit rates. Non-Resident Indians (NRIs) can now earn higher returns of 7.13%* p.a. on US Dollar FCNR (B) deposits for tenures ranging from 3 to 5 years. The interest rate increase follows the Reserve Bank of India’s special FCNR (B) swap facility, aimed at encouraging higher NRI fund inflows into India.

The exchange filing read, “For NRIs looking to grow and preserve their overseas earnings amid global interest rate volatility, Equitas FCNR (B) Deposit offers a compelling opportunity to maximise the value of their US Dollars. By maintaining deposits in foreign currency, NRIs can benefit from competitive returns, tax-free interest earnings in India with full repatriability of both principal and interest on maturity (subject to applicable regulations) and capital protection while remaining insulated from forex fluctuations. The deposit comes with a one-year lock-in period and premature withdrawals are permitted only after one year, as per bank norms”

Alongside Equitas, AU Small Finance Bank raised the rates to 7.1%, Karur Vysya Bank hiked to 7.1%, and Punjab National Bank rose 6.1%. The large public and private sector banks like HDFC Bank, ICICI Bank, Axis Bank, Bank of Baroda and SBI hiked the rates up to 6% from 3.5%-4.0% earlier.

7% returns in dollars over 3-5 years is the most attractive way of bringing back forex to the country, as equity returns fade for foreign investors in India.

Commenting on RBI’s Initiative, Murali Vaidyanathan, Country Head - Liabilities, Equitas Small Finance Bank Limited, said: “NRIs today are increasingly looking for solutions that protect the value of their overseas earnings, while insulating currency volatility, along with assured returns, is the best combo. Hedging has traditionally been an important cost in this space. RBI’s recent regulation towards FCNR is a timely step that strengthens the appeal of FCNR (B) deposits.

Equitas Small Finance Bank shares have delivered robust 21% YTD returns in 2026 alone.