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# Karur Vysya Bank raises US dollar FCNR(B) deposit rate to 7 percent
- URL: https://www.theglobalbanker.com/karur-vysya-bank-raised-us-dollar-fcnr-b-deposit-rate-to-7-percent/
- Published: 2026-06-10T10:12:30.000Z
- Updated: 2026-10-02T00:06:20.000Z
- Description: Karur Vysya Bank hiked its FCNR(B) US dollar deposit rate for 3 to 5 year maturities to 7 percent per annum, up from 2.63 percent, an increase of 437 basis points.
- Author: TGB Editorial Team
- Tags: Banking News, Asia-Pacific

Karur Vysya Bank hiked its FCNR(B) US dollar deposit rate for maturities of three to five years to **7 percent per annum**, up from 2.63 percent, representing a rise of **437 basis points**.

#### RATE CHANGE AND DETAILS

The bank announced the increase for the specific maturity band of three to five years on its FCNR(B) US dollar product. FCNR(B) accounts accept term deposits in foreign currency from non-resident depositors. The move, disclosed in the bank notice reported by The Hindu Business Line Banking, changed the quoted rate for that maturity bracket from the earlier 2.63 percent to 7 percent per annum.

The hike was effective from 10 June 2026\. The bank's revised FCNR(B) rate card lists 5.00 percent for one-to-two-year and 3.66 percent for two-to-three-year US dollar deposits. The 7 percent rate carries a mandatory one-year lock-in, during which premature closure is not permitted.

#### MARKET CONTEXT AND IMPLICATIONS

The move followed measures announced by the Reserve Bank of India in early June to attract foreign-currency deposits, including an FCNR(B) swap window and CRR and SLR relief on such deposits, after which several Indian banks raised FCNR(B) rates to 6-7 percent.

The adjustment came as banks moved to use the RBI's new FCNR(B) incentives to attract non-resident dollar deposits. 

**Sources:** [The Hindu Business Line Banking](https://www.thehindubusinessline.com/money-and-banking/karur-vysya-bank-hikes-fcnr-b-us-dollar-interest-rate-by-437-bps-for-maturities-of-3-5-years/article71084128.ece)