The Reserve Bank of India (RBI) has raised the cap on Foreign Currency Non-Resident (FCNR) deposit rates for tenors of 1-3 years to Alternate reference rate (ARR) + 400 bps. This move aims to stimulate foreign currency inflows and is effective until March 2025. FCNR deposit accounts are a popular investment option for Non-Resident Indians (NRIs) who want to invest and retain their foreign currency while earning high returns.
The article provides a comparative analysis of FCNR interest rates offered by prominent Indian banks, including ICICI Bank, SBI, Canara Bank, and Union Bank of India, for various currencies such as USD, GBP, Euro, and others. These rates vary depending on the tenor of the deposit, ranging from 12 months to 60 months.
Additionally, the article provides information on NRE Fixed Deposit (FD) interest rates offered by several big banks, including State Bank of India (SBI), HDFC Bank, Axis Bank, and Punjab National Bank (PNB). The NRE FD interest rates range from 6.60% to 7.40% for tenures of 1 year to 10 years, effective dates ranging from July 24, 2024 to August 1, 2024.