Several lenders, including State Bank of India (SBI) and ICICI Bank, have introduced revised Foreign Currency Non-Resident (FCNR-B) deposit offerings with higher interest rates aimed at attracting deposits from Non-Resident Indians (NRIs).

The move comes shortly after the Reserve Bank of India unveiled a foreign currency swap facility for banks until September 30, reducing the cost of hedging foreign currency deposits. This has provided banks with greater flexibility to offer more competitive returns on FCNR deposits.

The enhanced deposit rates are expected to encourage greater inflows of foreign currency from overseas Indians, strengthening foreign exchange reserves and supporting liquidity in the banking system.

According to market experts, the revised FCNR deposit schemes could potentially attract foreign capital inflows of around USD 60–70 billion, driven by improved returns and favourable regulatory support.