3 weeks ago
DCB Bank Raises FCNR(B) Deposit Rates for NRI Wealth Growth
A bank in India called DCB Bank is offering special savings accounts for people from India who live in other countries, called NRIs.
These accounts let them save money in foreign money like US dollars.
Right now, the bank offers a very good yearly reward of 7.5 percent for money saved for five years.
This means if you save 100 dollars, the bank adds 7.50 dollars every year as a thank-you for saving.
The money is safe because it stays in the same foreign currency, so changes in the Indian rupee don't affect it.
The reward money is also not taxed by the Indian government.
The bank is able to offer this good deal because India's central bank, the RBI, is supporting it.
But this special deal only lasts until the end of September 2026.
After that, the rates might not be as good.
So NRIs who want this deal should decide before the window closes.
DCB Bank now offers a 7.50 percent per annum interest rate on five-year USD FCNR(B) deposits, effective August 8, 2026.
The rate applies to retail FCNR(B) deposits in USD of 10,00,000 (10 lakh) or more.
Interest on FCNR(B) deposits is exempt from Indian income tax under Section 10(15)(iv)(fa) of the Income-tax Act, 1961, and compounds half-yearly.
The increase followed the Reserve Bank of India's decision to open a US Dollar-Rupee swap facility for FCNR(B) deposits mobilised between June 8 and September 30, 2026.
FCNR(B) deposits accept US Dollars, British Pounds, Australian Dollars, Canadian Dollars, and Euros, with tenures from one to five years, and remain fully repatriable.
Principal is booked and repaid in the same foreign currency, so it is not affected by Rupee movement against other currencies.
- Who
- DCB Bank and Non-Resident Indians (NRIs) looking to hold foreign currency savings.
- What
- DCB Bank raised its FCNR(B) deposit rate to 7.50 percent per annum on five-year USD deposits, offering tax-free, currency-protected returns.
- Where
- India, through DCB Bank, with accounts opened via a branch visit or email request for existing customers.
- When
- The rate took effect on August 8, 2026; the RBI swap facility backing it applies to deposits mobilised between June 8 and September 30, 2026.
- Why
- The increase followed the Reserve Bank of India's decision to open a US Dollar-Rupee swap facility, allowing banks to price FCNR(B) deposits more competitively without taking on additional currency risk.
Key facts
- Bank
- DCB Bank
- Product
- FCNR(B) Deposit (Foreign Currency Non-Resident (Bank))
- Interest rate
- 7.50% per annum on five-year USD deposits
- Rate effective date
- August 8, 2026
- Applicability
- Retail FCNR(B) value in USD of 10,00,000 or more
- Currencies accepted
- US Dollar, British Pound, Australian Dollar, Canadian Dollar, Euro
- Tenure
- One to five years
- Tax treatment
- Interest exempt from Indian income tax under Section 10(15)(iv)(fa), Income-tax Act, 1961
- RBI swap facility window
- June 8 to September 30, 2026
Sources
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