PNB and Ujjivan Raise FCNR Rates, Boosting NRI Deposit Appeal Amid Global Currency Shifts
State-owned banks are aggressively hiking interest rates on foreign currency deposits to attract Non-Resident Indians (NRIs). Punjab National Bank (PNB) has announced increased rates for FCNR (B) USD deposits, offering NRIs a safer way to grow overseas earnings while mitigating exposure to foreign exchange volatility.The move comes as the banking sector strategically adjusts following RBI’s announcement of a foreign currency swap window until September 30. This development allows banks to absorb the currency hedging costs previously associated with these specialized deposits, creating necessary headroom for rate increases.
PNB Boosts FCNR (B) USD Deposit Rates for NRIs
PNB has introduced special offerings across various tenures for its FCNR (B) deposit scheme. Customers can now earn 6 per cent on term deposits maintained for a duration of 3 to 4 years. The bank also offers 6.05 per cent interest for deposits with a tenure of 4 to 5 years.For the longest duration, PNB is offering a fixed deposit at 5 years with an attractive interest rate of 6.1 per cent. This proactive move positions PNB as a key participant in the race to capture foreign capital inflows from NRIs.
Ujjivan SFB Offers Up to 7.13 Per Cent on FCNR (B) Deposits
Ujjivan Small Finance Bank has also significantly increased interest rates on its FCNR (B) deposits, making them highly competitive for NRI investors. The bank stated that the new rate goes up to 7.13 per cent.This enhanced rate is applicable across tenures ranging from 3 to 5 years. Both PNB and Ujjivan SFB are targeting NRIs with these special deposit schemes. Experts believe that such aggressive deposit strategies could attract a substantial flow of foreign capital, potentially amounting to USD 60-70 billion into the scheme.
Bank of Baroda Launches Retail Deposit Scheme for Resident Indians
In a separate move focusing on the domestic market, Bank of Baroda (BoB) introduced a new retail term deposit scheme designed for resident Indian customers. The scheme is branded as 'BoB Golden Goal Deposit Scheme.'This special 555-day tenor deposit targets the general public with an interest rate of 6.75 per cent. Senior citizens benefit from a higher rate at 7.25 per cent, while super senior citizens (aged 80 years and above) are offered up to 7.35 per cent. Non-callable deposits receive an interest rate of up to 7.4 per cent.
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