HDFC Bank, ICICI Bank Raise FCNR Deposit Rates to 6.25% Under RBI Window

August 3, 2026
Posted by: Ankit Jaiswal
Category: News

HDFC Bank and ICICI Bank raise FCNR deposit rates to 6.25% under a special RBI window aimed at boosting foreign exchange reserves and overseas capital inflows.

HDFC Bank and ICICI Bank have raised their FCNR deposit rates to 6.25%, taking advantage of a special window rolled out by the Reserve Bank of India that is designed to strengthen the country’s foreign exchange reserves and encourage greater overseas capital inflows from non-resident Indians.

Foreign Currency Non-Resident, or FCNR, deposits allow NRIs to hold fixed deposits in foreign currencies such as the US dollar, and the interest earned is not subject to Indian income tax, making higher FCNR rates an attractive proposition for NRI investors looking to park foreign currency savings in Indian banks.

Click Here – Get Free Investment Predictions

Table of Contents

What Changed in FCNR deposit rates

Bank	New FCNR Rate	Trigger
HDFC Bank	6.25%	RBI special window
ICICI Bank	6.25%	RBI special window

Why the RBI Rolled Out This FCNR deposit rates Window

Check the Univest Screener for banking sector stocks

The Reserve Bank of India periodically opens special windows allowing banks to offer more attractive rates on foreign currency deposits when it wants to encourage higher capital inflows, typically during periods when strengthening forex reserves or supporting the rupee is a policy priority. Higher FCNR rates make it more attractive for non-resident Indians to move foreign currency savings into Indian bank deposits rather than keeping them abroad.

Both HDFC Bank and ICICI Bank, India’s two largest private sector lenders by market capitalisation, moving in tandem to raise FCNR deposit rates reflects the scale of the opportunity these banks see in attracting NRI deposits under the RBI’s revised window.

What This Means for NRI Depositors and Investors

Download the Univest iOS App or Univest Android App to track banking sector stocks and interest rate news.

For NRI depositors, the higher FCNR deposit rates translate into better tax-free returns on foreign currency fixed deposits parked with Indian banks. For investors in banking stocks, higher-cost deposit mobilisation needs to be weighed against the benefit of a larger low-risk foreign currency deposit base, and the net effect on margins will depend on how banks deploy this additional liquidity.

Conclusion

HDFC Bank and ICICI Bank have raised FCNR deposit rates to 6.25% under a special RBI window intended to strengthen forex reserves and boost NRI capital inflows. Investors and NRI depositors should track further rate movements and consult a SEBI-registered financial advisor or bank representative before making any deposit or investment decision.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

Frequently Asked Questions on Fcnr deposit rates

What are the new FCNR deposit rates at HDFC Bank and ICICI Bank?

Ans. Both HDFC Bank and ICICI Bank have raised their FCNR deposit rates to 6.25% under a special RBI window.

Why did the RBI roll out this special window?

Ans. The RBI introduced the window to help strengthen the country’s foreign exchange reserves and boost overseas capital inflows from non-resident Indians.

What is an FCNR deposit?

Ans. An FCNR, or Foreign Currency Non-Resident, deposit allows NRIs to hold fixed deposits in foreign currencies such as the US dollar, with interest earned exempt from Indian income tax.

Who benefits from higher FCNR rates?

Ans. Non-resident Indian depositors benefit from better tax-free returns on foreign currency fixed deposits parked with Indian banks.

Should I move my deposits based on this FCNR deposit rates change?

Ans. Deposit and investment decisions should factor in individual financial goals and currency risk. Consult a SEBI-registered financial advisor or your bank before making decisions.

Where can I track banking sector news live?

Ans. Banking sector stocks and interest rate news can be tracked live on the Univest platform alongside SEBI-registered research.

FCNR Deposit Rates

Author: Ankit Jaiswal

Ankit Jaiswal is the Senior Research Analyst at Univest, leading the platform's in-house equity research desk and serving as the editorial reviewer for all research and blog content published at univest.in. With 11+ years of experience in Indian equity markets, he oversees stock recommendations, earnings analysis, sector coverage, and ensures every published article meets SEBI Research Analyst Regulations. He holds a Bachelor of Commerce (B.Com) from St. Xavier's College, Kolkata — one of India's most prestigious commerce institutions — and has cleared CMT Level 2 from the CMT Association, a globally recognised certification in technical analysis and market research. His research methodology combines fundamental analysis (earnings quality, balance sheet strength, management commentary) with advanced technical analysis (chart patterns, momentum indicators, market structure) — giving Univest's retail investors a dual-lens approach that most Indian research platforms lack. Ankit is among the most comprehensively certified analysts in Indian financial media, holding five NISM certifications: Series-XV (Research Analyst), Series-VIII (Equity Derivatives), Series-VII (SORM), Series-VI (Depository Operations), and Series-V-A (Mutual Fund Distributors). At Univest — India's SEBI-registered research and advisory platform — Ankit's responsibilities include leading the research team, finalising stock recommendations published across Pro Lite, Pro Super, and Pro Gold advisory services, and maintaining editorial oversight of all YMYL financial content published on the blog.