HDFC Bank announced to increase interest rates on its Foreign Currency Non-Resident (FCNR) deposits. The FCNR) deposits for three years to five years tenors and above have been hiked to 6 percent. The latest rates are applicable from 10 June 2026, HDFC Bank website says. It must be noted that HDFC FCNR deposit booked for 3 to 5 years tenure will have a lockin period of 1 year. This will be applicable to deposit booked between June 10, 2026 to September 30, 2026.

Further, HDFC Bank mentions that existing FCNR deposits booked under GBP, EURO & JPY currencies for the tenor 1 year 1 day to 5 year and which are due for auto renewal will be auto renewed for 1 year tenor by default.

“No interest will be paid if the FCNR Deposit is prematurely withdrawn before 1 year. No Penalty will be levied on premature closure of FCNR Fixed Deposit. With effect from July 22nd, 2023, the interest rate applicable for premature withdrawal including Partial Withdrawal on FCNR Deposits will be the rate on the date of deposit booked for the period for which deposit remained with the bank and not at the contracted rate,” HDFC Bank website says.

Swap Facility for FCNR (B) Deposits

The Reserve Bank of India (RBI) had on June 8, introduced a US Dollar-Rupee Forex Swap Facility for fresh FCNR (B) deposits, mobilised for a minimum tenor of three years and maximum tenor of five years.

RBI has said that the Swap Facility comes into effect immediately and will remain open up to October 16, 2026 for deposits mobilized between the date of this circular and September 30, 2026.

“The swap facility will be available to the AD Category I banks for fresh FCNR(B) deposits mobilized in any freely convertible currency, including deposits that are renewed upon maturity, for a minimum tenor of three years and maximum tenor of five years. However, the swap facility with RBI will be available in US Dollars only,” said the RBI circular.