Federal Bank launches FCNR Max Deposit Scheme with 6.25% interest rate

Key facts

• Federal Bank has introduced the FCNR Max Deposit Scheme in US dollars for Non-resident Indian (NRI) customers, offering an interest rate of 6.25% per annum for tenures between three and five years.
• The scheme includes a mandatory lock-in period of one year, with premature withdrawals attracting an interest rate 1% lower than the applicable rate for the actual tenure held.
• Federal Bank reported a total business mix of ₹5.78 lakh crore as of 31 March 2026.
• The Reserve Bank of India (RBI) introduced a special FCNR(B) swap facility and exempted incremental FCNR(B) deposits mobilised between July 1 and September 30 from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements.
• Other Indian lenders' USD FCNR(B) rates include ICICI Bank and Axis Bank at 6% for three to five years, Kotak Mahindra Bank up to 6.15% for larger-ticket deposits, YES Bank up to 6.60%, CSB Bank at 7.05% for five years, Bank of Baroda up to 6% for five years, and revised offerings from Punjab National Bank.