HDFC Bank and ICICI Bank Hike FCNR Deposit Rates Up to 6.25%

HDFC Bank and ICICI Bank have revised interest rates on US dollar-denominated Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, as per The Moneycontrol news report.  

From August 1, 2026, both banks are offering 6.25% on deposits with tenures of three years to five years. The rate was 6% before the revision. HDFC Bank has not changed rates for shorter maturities.  

Deposits with tenures of one year to less than two years continue to earn 3.5%, while those between two years and less than three years carry an interest rate of 3.25%. 

RBI Scheme Remains Open till September 2026 

The revision follows the Reserve Bank of India's concessional FCNR(B) swap facility announced in June 2026. The facility was introduced on June 5, 2026, and became operational on June 8, 2026. It is available for eligible FCNR(B) deposits raised until September 30, 2026. 

The scheme allows banks to mobilise foreign currency deposits from non-resident Indians (NRIs) under concessional swap terms. It was introduced after overseas deposit inflows slowed during the previous financial year. 

Overseas Deposits Rise Under Special Window 

Reserve Bank of India data released on August 1, 2026, showed that banks had mobilised $36.73 billion through fresh FCNR(B) deposits under the special window as of July 31, 2026. 

Total foreign exchange inflows under the facility stood at $40.82 billion. Apart from FCNR(B) deposits, the amount included $2.58 billion raised through Overseas Foreign Currency Borrowings (OFCBs) and $1.52 billion through External Commercial Borrowings (ECBs). 

Decline in Inflows Prompted the Measure 

FCNR(B) deposits allow NRIs to hold fixed deposits in foreign currencies, including the US dollar. Both the principal and interest are repaid in the same currency, limiting exchange rate exposure for depositors. 

At its June 2026 Monetary Policy Committee meeting, the RBI noted that net FCNR(B) inflows had declined to $946 million in FY26 from more than $7 billion in FY25. The temporary swap window was introduced to improve foreign currency deposit mobilisation. 

Read More: Indian Railway Finance Corporation Share Price in Focus After Q1 FY27 Earnings Results: Total Income Up 21.3% YoY! 

HDFC Bank and ICICI Bank Share Price Performance  

As of August 3, 2026, 1:19 pm, HDFC Bank Ltd share price was trading at ₹751.25, up 0.41% from the previous closing price, while ICICI Bank Ltd share price was trading at ₹1,445.50, up 0.70% from the previous closing price. 

Conclusion 

The revised FCNR(B) deposit rates come as banks continue to mobilise overseas funds under the RBI's special facility. Latest data shows strong participation through foreign currency deposits and borrowings. 

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