Karur Vysya Bank has increased its FCNR(B) US Dollar (USD) deposit rates for maturities of 3 years to 5 years to 7 per cent per annum from the earlier rate of 2.63% per annum with effect from June 10, 2026.

This sharp increase in the foreign currency non-resident (bank) deposit rates comes in the wake of the Reserve Bank of India’s recent measures permitting banks to avail of USD/INR (Indian Rupee) swap facility at par for such deposits.

“The revised rates are aimed at attracting incremental foreign currency deposits and supporting the RBI’s initiative to augment foreign exchange inflows into the country,” said V Rama Chandra Reddy, Head – Treasury, Karur Vysya Bank.

By offering an at-par USD/INR swap for fresh FCNR(B) deposits of 3-5 years, the central bank is effectively absorbing nearly 280-300 basis points (bps) of annual swap cost, substantially improving the economics for banks, according to him.

Adding to the attractiveness, RBI has exempted eligible FCNR(B) deposits mobilised between June 8 and September 30, 2026 from CRR (cash reserve ratio) and SLR (statutory liquidity ratio) requirements.

CRR exemption alone provides a cost benefit of around 20 bps, while SLR relaxation further enhances balance sheet efficiency, Reddy said.

Published on June 10, 2026