Bandhan Bank Hikes FCNR(B) Deposit Rates to 7.1% for NRI Customers for 3-5 Year Terms

Bandhan Bank has announced an increase in interest rates on its Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits effective from June 18, 2026.  

The bank is now offering 7.1% on US dollar-denominated deposits of $1 million and above for tenures of 3 to 5 years. For deposits up to $1 million, the rate is set at 7%, as per a news report. 

Details of the Rate Increase 

This rate adjustment by Bandhan Bank follows the Reserve Bank of India’s (RBI) introduction of a US dollar-rupee forex swap facility.  

This facility is applicable for banks on fresh FCNR(B) deposits mobilised for a minimum tenor of 3 years and up to 5 years. The regulatory measure is designed to encourage foreign currency inflows into the banking system. 

The initiative is expected to provide non-resident Indian (NRI) customers with stable and competitive returns over a longer tenure while mitigating exposure to potential exchange rate fluctuations, especially in the event of rupee depreciation. 

Availability and Context 

As Rajinder Kumar Babbar, Executive Director and Chief Business Officer of Bandhan Bank, highlighted that this offering allows customers to lock in competitive returns for a longer duration while effectively mitigating currency-related risks.  

The limited-period offer is available through Bandhan Bank’s network of nearly 2,000 branches across the country, where eligible customers can open non-resident accounts and avail of the revised deposit rates. 

Read More: City Union Bank Increases FCNR(B) Deposit Rates to 7.10% for NRI Customers for 3-5 Year Terms! 

Industry Context and Comparisons 

Bandhan Bank’s revision in rates is in line with the RBI's removal of the interest rate ceiling on fresh deposits with maturities of 3 to 5 years.  

Banking industry sources indicate that the central bank's decision to temporarily withdraw the interest rate ceiling on fresh FCNR(B) deposits in the 3-to-5-year maturity bucket until September 30, 2026, followed requests from smaller banks. 

Before this relaxation, FCNR(B) deposits with maturities of 3 to 5 years were subject to a ceiling of the overnight alternative reference rate for the respective currency or swap rate plus 350 basis points (bps).  

Most banks have already increased FCNR(B) deposit rates in recent months to attract overseas deposits. 

Bandhan Bank Share Price Performance  

As of June 19, 2026, at 2:44 PM, Bandhan Bank share price on NSE was trading at ₹208.90 down by 2.51% from the previous closing price. 

Conclusion 

Bandhan Bank has raised its FCNR(B) deposit rates to 7.1% for deposits of $1 million and above, and 7% for deposits up to $1 million, following RBI's regulatory changes. This move aligns with the central bank's efforts to boost foreign currency inflows. 

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