South Indian Bank raises FCNR(B) USD deposit rates to 6.50% for NRIs, leveraging RBI”s Forex Swap Facility. Secure high returns on foreign currency savings.
The revised rate is applicable to deposits with a maturity period of three to five years, aiming to offer Non-Resident Indians (NRIs) favourable returns on their foreign currency savings, the bank said in a statement.
The upward revision follows the Reserve Bank of India’s (RBI) recent introduction of a USD/INR Forex Swap Facility for fresh FCNR(B) deposits mobilised for a three-to-five-year tenure. Under this mechanism, banks can swap eligible FCNR(B) USD deposits with the RBI, allowing them to mobilise stable foreign currency deposits while effectively mitigating currency risk.
The bank noted that the RBI scheme applies to eligible FCNR(B) deposits accepted up to September 30, with the corresponding swap facility remaining operational until October 16.
South Indian Bank operates a nationwide network comprising 952 branches, 2 Ultra Small Branches, 3 Satellite branches, 1,147 ATMs, and 126 CRMs across India, along with a representative office in Dubai, UAE. The lender’s shares are listed on the BSE and the National Stock Exchange (NSE).
money.rediff.com