THEBUSINESSBYTES
BUREAU
MUMBAI,
JUNE 12, 2026
In a move aimed at
attracting higher foreign currency inflows and strengthening India's external
sector, Bank of Baroda has launched a special Foreign Currency Non-Resident
[FCNR(B)] Deposit Scheme offering enhanced interest rates for Non-Resident
Indians (NRIs), following the latest measures announced by the Reserve Bank of
India.
Effective from June
11, 2026, the new scheme offers significantly higher returns on FCNR(B)
deposits in major foreign currencies, including the US Dollar (USD), British
Pound Sterling (GBP), Euro, Australian Dollar (AUD), and Canadian Dollar (CAD),
particularly in the three-to-five-year maturity segment.
Under the revised
rates, NRI customers can earn up to 6.00% per annum on US Dollar deposits,
5.15% on Canadian Dollar deposits, 4.75% on British Pound and Australian Dollar
deposits, and 3.75% on Euro deposits for five-year tenures. The bank has also
introduced attractive rates across the 3-4 year and 4-5 year maturity buckets.
Commenting on the
initiative, Beena Vaheed, Executive Director of Bank of Baroda, said, “The
Reserve Bank of India’s recent measures to encourage foreign currency inflows
into the banking system have created an enabling environment for banks to
strengthen their FCNR(B) offerings for the NRI community. The move is a
well-calibrated and multi-pronged measure aimed at attracting FCNR(B) deposits
and strengthening the Indian Rupee. Bank of Baroda’s new deposit scheme
provides NRIs with an attractive opportunity to earn enhanced returns on their
foreign currency deposits. As India’s international bank with a significant
presence across multiple countries, the Bank is well positioned to capitalise
on this opportunity and maximise FCNR(B) deposit mobilisation.”
The bank expects the special FCNR(B) scheme to support stronger foreign currency inflows, improve access to overseas funding at competitive costs, and contribute to the country's foreign exchange reserves. The initiative is also expected to help finance business expansion and support broader economic growth.
The highest return under the scheme is available on five-year US Dollar deposits at 6.00% per annum, making it one of the most attractive FCNR(B) offerings currently available for NRIs seeking stable foreign currency returns while maintaining exposure to India’s banking system.