Equitas Small Finance Bank Limited has announced an upward revision on its FCNR (B) deposit rates to 7.13% per annum for Non-Resident Indians (NRIs). According to the exchange filing, the interest rate increase applies to US Dollar FCNR (B) deposits for tenures ranging from 3 to 5 years. The bank positions this as a compelling opportunity for NRIs to maximize the value of their overseas earnings amid global interest rate volatility.
As reported by Upstox, Equitas Small Finance Bank shares traded in red with 0.9% losses following the announcement. The rate revision follows the Reserve Bank of India's special FCNR (B) swap facility aimed at encouraging higher NRI fund inflows into India. Other major banks have also raised their rates, with AU Small Finance Bank and Karur Vysya Bank raising rates to 7.1%, while Punjab National Bank increased its rates to 6.1%. According to the latest market data, small finance banks continue to offer the highest rates, with Suryoday Small Finance Bank and Utkarsh Small Finance Bank offering the highest slab rates of 8.1%, while Equitas Small Finance Bank and Shivalik Small Finance Bank offer up to 8%.
According to the report, large public and private sector banks including HDFC Bank, ICICI Bank, Axis Bank, Bank of Baroda and SBI have hiked their rates up to 6% from 3.5%-4.0% earlier. The 7% returns in dollars over 3-5 years are positioned as the most attractive way of bringing back forex to the country, as equity returns fade for foreign investors in India. The deposit comes with a one-year lock-in period and premature withdrawals are permitted only after one year. Among private sector lenders, IDFC First Bank and CSB Bank offer rates of up to 7.35%, while DCB Bank and Unity Small Finance Bank provide up to 7.5%.
Murali Vaidyanathan, Country Head - Liabilities, Equitas Small Finance Bank Limited, commented on the RBI's initiative, stating that NRIs today are increasingly looking for solutions that protect the value of their overseas earnings while insulating currency volatility. As reported by Upstox, he emphasized that RBI's recent regulation towards FCNR is a timely step that strengthens the appeal of FCNR (B) deposits, noting that hedging has traditionally been an important cost in this space.
According to the report, Equitas Small Finance Bank shares have delivered robust 21% year-to-date returns in 2026 alone, demonstrating strong market performance alongside the rate revision announcement. The bank's competitive positioning in the small finance banking sector continues to attract investor attention, with special deposit schemes emerging as popular options among investors seeking higher returns than regular term deposits.
