Archive · 3 Aug 2026
HDFC and ICICI Raise FCNR Rates for NRIs
NRIs can put money in Indian banks in foreign currency.
HDFC Bank and ICICI Bank just raised the interest they pay on these deposits.
The new rates are 6.25% for most 3‑to‑5‑year deposits.
The government will cover some costs until September 2026, so banks can give better rates.
Deposits have a 12‑month lock‑in period, but you can withdraw early before that without penalty.
If you withdraw after the lock‑in, you get the original rate minus a small penalty.
The banks will process online requests in two working days.
The interest you earn is tax‑free for NRIs.
This means more money for people who live abroad but want to invest in India.
HDFC Bank and ICICI Bank increased FCNR (B) deposit rates for NRIs.
New rates: 6.25% for 3‑5 year tenures at both banks, 6.00% for 5‑year at ICICI.
RBI will cover hedging costs for 3‑5 year FCNR (B) deposits until 30 September 2026, allowing banks to pass savings to customers.
Lock‑in periods: 12 months for 3‑5 year deposits, with no penalty for early withdrawal before 12 months.
Deposits processed via netbanking within two working days, interest applied at prevailing rates at processing time.
- Who
- HDFC Bank and ICICI Bank, India's largest private sector lenders
- What
- raised FCNR (B) fixed deposit interest rates for NRIs
- When
- Effective 1 August 2026
- Where
- India
- Why
- RBI reduced hedging costs, allowing banks to pass savings to customers
- Bank
- HDFC Bank
- Bank
- ICICI Bank
- Product
- FCNR (B) Fixed Deposit
- Effective Date
- 1 August 2026
- New Rate (3-5 years)
- 6.25% (HDFC), 6.25% (ICICI)
- Lock-in Period
- 12 months
- Hedging Cost Coverage
- Government until 30 September 2026
- Minimum Deposit (ICICI)
- ₹4 lakh