DBS Bank India revises FCNR (B) deposit interest rate; NRIs can get up to 5.6% per annum

DBS Bank India has revised the interest rates on its Foreign Currency Non-Resident (Bank) FCNR(B) deposits for Non-Resident Indians (NRIs). The new rates came into effect on July 1, 2026.

The hike follows measures announced by the Reserve Bank of India (RBI), under which it recently implemented a foreign exchange swap facility and removed the interest rate ceiling on three- to five-year FCNR(B) deposits. By absorbing the currency hedging costs, the apex bank has enabled lenders to offer higher interest rates on FCNR(B) deposits.

Following the revision, the private sector lender will now offer an interest rate of up to 5.6% per annum on FCNR(B) deposits denominated in US dollars for tenures ranging from three to five years. However, these deposits come with a mandatory one-year lock-in period, during which premature withdrawals are not permitted.

"This provides NRIs with an opportunity to earn attractive interest while maintaining their savings in a foreign currency," the bank said in a press release.

The deposits are fully repatriable, with both principal and interest payable in the specified foreign currency, helping reduce exposure to exchange rate fluctuations at maturity.

Eligible NRIs can also benefit from seamless digital onboarding, enabling them to open accounts from overseas with ease, including FCNR(B) deposit accounts.

A slew of public and private sector banks have revised their FCNR(B) deposit rates following the RBI's measures, including Bank of Baroda, Bandhan Bank, ICICI Bank, State Bank of India, HDFC Bank, and Axis Bank, among others.