PNB and Ujjivan SFB lift FCNR rates to attract NRIs
Punjab National Bank (PNB) and Ujjivan Small Finance Bank just bumped up their interest rates on foreign currency nonresident (FCNR) deposits, hoping to attract more nonresident Indians.
PNB now offers up to 6.1% for five-year terms, while Ujjivan is going as high as 7.13% for three to five years, making overseas savings a bit more tempting and helping nonresident Indians manage currency swings.
RBI swap could attract $60-70bn
These hikes follow the Reserve Bank of India's recent foreign currency swap window, which lets banks cut costs and offer sweeter rates.
Experts say this could bring in $60 billion to $70 billion from abroad.
Not just for nonresident Indians, Bank of Baroda has also launched a Golden Goal scheme with up to 7.4% interest for domestic savers, showing banks are keen on boosting deposits all around.