FCNR(B) deposit rates 2026: PNB, Ujjivan hike

What changed for NRI dollar deposits

State-owned Punjab National Bank (PNB) said it has increased the interest rate on FCNR (B) USD deposits under a special deposit offering. The bank positioned the move as a way for non-resident Indians (NRIs) to grow overseas earnings while being safeguarded against foreign exchange fluctuations. The announcement comes at a time when banks are actively recalibrating deposit pricing across both foreign-currency and rupee products.

Ujjivan Small Finance Bank (Ujjivan SFB) also announced a hike in interest rates on FCNR (B) dollar deposits. In a separate statement, the bank said it is now offering up to 7.13 percent per annum for tenures ranging from three to five years. The update was described as part of a broader industry trend, with the context noting support from the Reserve Bank of India.

PNB’s FCNR(B) USD deposit rates under the special offer

PNB’s revised rates, as disclosed, apply to specific longer tenures within the FCNR (B) USD deposit product. Under the special FCNR (B) deposit offering, customers can earn 6 percent for term deposits with tenure of 3-4 years. For the 4-5 year bucket, PNB said customers can earn 6.05 percent.

The bank’s statement framed FCNR (B) deposits as a way to protect overseas earnings from foreign exchange movements, consistent with how FCNR (B) deposits are typically marketed. PNB did not provide additional slabs or mention other currencies in the provided information. It also did not specify the effective date for the revised FCNR (B) rates in the supplied text.

Ujjivan SFB raises FCNR(B) USD deposit rates to 7.13%

Ujjivan SFB said it has increased the interest rates offered on FCNR (B) dollar deposits. The bank is now offering up to 7.13 percent per annum on these deposits for tenures ranging from three to five years. The note explicitly links the change to a broader industry trend, supported by the Reserve Bank of India.

Alongside the FCNR (B) update, the provided material includes multiple interest-rate tables for Ujjivan SFB’s rupee fixed deposits and NRE deposits. These tables include effective dates, which are important because they indicate when those slabs apply. While FCNR (B) is a foreign-currency deposit, the additional rate tables give a wider view of how the bank is pricing deposits across customer categories.

Quick comparison: FCNR(B) USD rates disclosed by the banks

The two banks disclosed FCNR (B) USD rates for broadly similar longer tenures, but at different peak levels. PNB’s stated rates are clustered around 6 percent for 3-5 years, while Ujjivan SFB’s stated peak rate is higher at 7.13 percent for 3-5 years.

Ujjivan SFB: FD rate highlights and what they indicate

The material also lists Ujjivan SFB “FD Interest Rates (p.a.)” as updated as of 11 June 2026. In that highlight set, the “highest slab rate” is stated as 7.55 percent for a tenure of 3 years 1 day to 3 years 6 months. It also lists 7.25 percent for 1 year, 7.40 percent for 2 years, 7.25 percent for 3 years, and 7.20 percent for 4 years and 5 years. A tax-saving FD rate is listed at 7.20 percent.

Separately, the detailed domestic/NRO deposit table says Ujjivan SFB has new FD rates effective 5 June 2026 for deposits of less than Rs 3 crore. The table provides slabs for regular citizens and senior citizens, ranging from 7 days to 10 years. It also includes a note that additional senior citizen rates are not applicable to NRO deposits.

Ujjivan SFB domestic/NRO and NRE slabs effective 5 June 2026

The domestic/NRO table lists a top regular-citizen rate of 7.55 percent for 3 years 1 day to 3 years 6 months, and a top senior-citizen rate of 8.05 percent for the same slab. For 1 year to less than 2 years, it lists 7.25 percent for regular citizens and 7.75 percent for senior citizens. For exactly 2 years, it lists 7.40 percent and 7.95 percent, respectively.

The NRE fixed deposit table, also effective 5 June 2026 (for deposits of less than Rs 3 crore), repeats the same longer-tenure slabs and includes a note stating that no additional interest rate is offered for senior citizens who are NRI depositors. A separate tax saver deposit table lists 7.20 percent for regular citizens and 7.70 percent for senior citizens for a 5-year tenor.

Why FCNR(B) deposit moves matter for NRIs

PNB’s statement directly highlights the NRI use case: earning a stated return on USD deposits while being protected from foreign exchange fluctuations. This is a key distinction between foreign-currency deposits and rupee deposits for customers with USD income streams. Ujjivan’s move to 7.13 percent for 3-5 year tenures increases the headline rate available in that specific product range, based on the information provided.

From a market perspective, the disclosed changes show how deposit rates are being used as a lever to attract longer-tenure money. The mention of a “broader industry trend” and the reference to the Reserve Bank of India’s support signal that these rate actions are not isolated, although no specific RBI measure or circular is cited in the provided text.

Key takeaways for depositors

For FCNR (B) USD depositors, the most important decision points in the disclosed information are the tenure and the bank-specific rate. PNB’s special offering lists 6.00 percent for 3-4 years and 6.05 percent for 4-5 years. Ujjivan SFB lists up to 7.13 percent for 3-5 years.

For rupee fixed deposit customers evaluating Ujjivan SFB, the effective dates and category rules matter. The domestic/NRO table is explicitly effective from 5 June 2026, with senior citizen add-ons not applicable to NRO deposits. The NRE table also carries an explicit note that senior citizen additional rates are not offered for NRI depositors.

Conclusion

PNB and Ujjivan SFB have both raised FCNR (B) USD deposit rates for longer tenures, with PNB disclosing 6.00-6.05 percent for 3-5 years and Ujjivan SFB offering up to 7.13 percent for 3-5 years. Ujjivan’s accompanying rate cards also outline revised rupee FD and NRE slabs effective 5 June 2026, along with FD highlights updated as of 11 June 2026. The next set of actionable details for depositors will depend on how long these special or revised rates remain available and whether either bank updates slabs again.