PNB Adjusts FCNR(B) Rates Up To 6.10%; Targets $2.5 Billion in NRI Deposits

Punjab National Bank has revised its FCNR(B) deposit rates, introducing rates of up to 6.10% for different tenure options, as per the ANI report.  

These competitive rates are part of PNB's strategy to attract approximately $2.5 billion from Non-Resident Indian (NRI) investors by capitalising on favourable conditions compared to US Treasury yields. 

Overview of New FCNR(B) Deposit Rates 

Punjab National Bank has adjusted its FCNR(B) deposit interest rates, offering 6% for deposits up to $1 million for a 3-year period.  

For deposits spanning 3 to 4 years, the rate is set at 6.05%, while those for 4 to 5 years enjoy a rate of 6.10%.  

These rates are significantly higher than the previous offers, which were 3.24% for deposits held for 3 years or more but less than 4 years. 

Speaking to ANI, Punjab National Bank, MD and CEO, Ashok Chandra stated, “It will be a very attractive rate because globally, if you see even the US treasury rate, it is somewhere around 4.25%.  

So, for the investor and for the NRIs, I think India becomes a very good destination to invest in now. We are expecting to mobilise around 2.5 billion USD.” 

HDFC Bank and AU Small Finance Bank have also revised their FCNR(B) rates. HDFC is offering 6% on NRI dollar deposits, while AU Small Finance Bank has increased rates from 5.15% to 7.10% for 3-year deposits. 

RBI's Forex Swap Facility for Banks 

The Reserve Bank of India has introduced a US Dollar-Rupee Forex Swap Facility, allowing banks to attract NRI deposits with a 3 to 5-year tenor.  

This measure effectively protects banks from currency risk, as they can exchange foreign deposits for rupees at present rates and repurchase them at predetermined rates upon maturity. 

Read More: HDFC Bank Adjusts Lending Rates with Up to 10 BPS Increase Across Tenors! 

Features of FCNR(B) Deposits 

FCNR(B) deposits are maintained in foreign currency, safeguarding the principal and interest against rupee depreciation.  

The proceeds and interest can be fully repatriated and remain untaxed in India. These accounts can be jointly held by NRIs or with close relatives residing in India, offering a nomination facility as well. 

Punjab National Bank Share Price Performance  

As of June 11, 2026, at 9:18 AM, Punjab National Bank share price on NSE was trading at ₹105.58, down by 1.48% from the previous closing price. 

Conclusion 

Punjab National Bank has revised its FCNR(B) deposit interest rates, offering returns of up to 6.10% for deposits with tenures ranging from 3 to 5 years. The revision follows the Reserve Bank of India's introduction of the US Dollar-Rupee Forex Swap Facility.  

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