Mumbai: Private sector lender South Indian Bank on Friday said it has revised the interest rate on US dollar deposits under Foreign Currency Non-Resident (Bank) to 6.5 per cent per annum for tenures of 3-5 years.The revised rate follows the Reserve Bank of India's (RBI) recent introduction of a USD/INR forex swap facility for fresh FCNR(B) deposits mobilised by banks for tenures of three to five years, the bank said in a statement.Read more: PhonePe wallet inactive? You will now be fined for not using itUnder the RBI facility, banks can swap eligible FCNR(B) deposits with the central bank in US dollars, helping them mobilise stable foreign currency resources while managing currency risks more effectively.The facility is available for eligible FCNR(B) deposits accepted up to September 30, 2026, while the swap window with the RBI will remain open until October 16, 2026.South Indian Bank said the revised deposit rate offers NRIs an opportunity to earn attractive returns on their foreign currency savings while maintaining protection against exchange rate fluctuations.Read more: CBI conducts searches in Kolkata in PNB fraud casesThe lender said the RBI's forex swap scheme is expected to support growth in long-term foreign currency deposits across the banking sector and enhance banks' ability to raise overseas funds.
South Indian Bank raises FCNR deposit rate to 6.5 pc after RBI swap window
South Indian Bank has boosted interest rates on US dollar deposits for Non-Resident Indians to 6.5% per annum for 3-5 year tenures. This move follows the RBI's new USD/INR forex swap facility, enabling banks to secure stable foreign currency while managing exchange risks. The attractive returns offer NRIs a chance to grow their savings securely, with the RBI facility available until September 2026.
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