Equitas Small Finance Bank Limited, has hiked its FCNR (B) deposit rates.
Non-Resident Indians (NRIs) can now earn higher returns of 7.13 per cent p.a. on US Dollar FCNR (B) deposits for tenures ranging from 3 to 5 years. The interest rate increase follows Reserve Bank of India’s special FCNR (B) swap facility, aimed at encouraging higher NRI fund inflows into India.
For NRIs looking to grow and preserve their overseas earnings amid global interest rate volatility, Equitas FCNR (B) Deposit offers a compelling opportunity to maximize the value of their US Dollars. “By maintaining deposits in foreign currency, NRIs can benefit from competitive returns, tax-free interest earnings in India with full repatriability of both principal and interest on maturity (subject to applicable regulations) and capital protection while remaining insulated from forex fluctuations,” Equitas said in a statement.
The deposit comes with a one-year lock-in period and premature withdrawals are permitted only after one year as per bank norms.
“NRIs today are increasingly looking for solutions that protect the value of their overseas earnings while insulating currency volatility along with assured returns is the best combo. Hedging has traditionally been an important cost in this space, RBI’s recent regulation towards FCNR is a timely step that strengthens the appeal of FCNR (B) deposits,” Murali Vaidyanathan, Country Head - Liabilities, Equitas Small Finance Bank Limited, said.
