Some lenders hike rates on FX deposits for non-resident Indians (updated)

Yes Bank

10/06/2026 13:56

Added details about SBI's rate hike
By Gopika Gopakumar

    MUMBAI, June 10 (Reuters) - Some banks raised rates on foreign currency deposits for non-resident Indians by as much as 300 basis points on Wednesday, in a likely bid to attract dollar inflows after the central bank eased regulatory restrictions last week.
The Reserve Bank of India will bear the ‌full hedging cost for three- to five-year non-resident deposits, it said on Friday, as part of a broader set of measures to encourage overseas flows and curb weakness in the rupee.
The unit is Asia's second-worst-performing currency this year, down 6% so far, and slipping to record lows in May.
HDFC Bank HDBK.NS, India's largest private sector lender, hiked rates by 235-265 basis points to 6% on three- to five-year deposits.
State Bank of India, the country's largest bank, raised rates by as much as 300 basis points across three- to five- year deposits. For deposits up to $1 million, it will now offer between 5.25% to 5.75% on of three- to five-year tenures. For deposits above $1 million, the bank will offer between 5.5% and 6% on tenures of three to five years. 
AU Small Finance Bank AUFI.NS increased rates by 195 bps, offering 7.1% on three-year deposits and 7% on five-year deposits. 
Yes Bank YESB.NS has set the rate at 7% on three-year  deposits, 7.05% on four-year deposits and 7.10% on five-year deposits, according to a Bloomberg report on Wednesday. A Yes Bank spokesperson did not respond to Reuters' request for comment. 
Other banks are expected to announce their new rates this week.
Lenders could raise as much as $35 billion to $40 billion via these foreign currency deposits until September this year, according to a Reuters report. The RBI said it is also open to banks providing guarantees to offshore lenders to lend to NRIs, who can place these borrowed funds as deposits. 
The RBI had last launched a concessional forex swap facility for non-resident Indians in 2013 when the ​rupee ⁠had depreciated sharply due to the U.S. Federal Reserve's "taper tantrum". Under that scheme, HDFC Bank mobilised $3.4 billion, followed by ICICI Bank ICBK.NS, SBI SBI.NS and select foreign banks. 


 (Reporting by Gopika Gopakumar in Mumbai; Editing by Sonia Cheema and Diti Pujara)
 ((Gopika.Gopakumar@thomsonreuters.com;))