Bandhan Bank raises US dollar FCNR(B) rates up to 7.1%
Business
Bandhan Bank just bumped up its interest rates on US dollar FCNR(B) deposits for NRIs.
If you're parking $1 million or more, you can now get up to 7.1% interest for three to five years; smaller deposits earn 7%.
The new rates were announced on Friday.
RBI swap facility boosts foreign inflows
This change follows the RBI's push to attract more foreign currency by launching a special US dollar-rupee swap facility for these deposits.
Rajinder Kumar Babbar, executive director and chief business officer of Bandhan Bank, says it's a win for NRIs (better returns and less worry about currency swings) while also helping boost India's foreign currency inflows into the domestic banking system and ease pressure on liquidity back home.