Mumbai, June 19: South Indian Bank, one of India’s private sector banks has revised their interest rate on its Foreign Currency Non-Resident (Bank) USD Deposits to 6.50% per annum for deposits with a maturity period of three to five years, offering Non-Resident Indians (NRIs) a rewarding opportunity to earn favourable returns on their foreign currency savings.
The rate revision follows the Reserve Bank of India’s recent introduction of a USD/INR Forex Swap Facility for fresh FCNR(B) deposits mobilised for a tenure of three to five years. Under the facility, banks can swap eligible FCNR(B) deposits with the RBI in US dollars, enabling them to mobilise stable foreign currency deposits while effectively managing currency risk.
The RBI scheme is available for eligible FCNR(B) deposits accepted up to September 30, 2026, with the swap facility remaining open till October 16, 2026.
The RBI’s Forex Swap Facility is expected to support the growth of long-term foreign currency deposits across the banking sector, providing NRIs with an opportunity to benefit from attractive USD returns while banking with South Indian Bank.