Equitas Small Finance Bank has revised its Foreign Currency Non-Resident (Bank) [FCNR(B)] deposit rates, offering Non-Resident Indians (NRIs) an interest rate of 7.13% per annum on US dollar deposits with tenures ranging from three to five years.

The rate hike follows the Reserve Bank of India's special FCNR(B) swap facility aimed at encouraging higher NRI fund inflows into the country. The bank said the revised offering provides NRIs with an opportunity to earn competitive returns while keeping their savings in foreign currency and avoiding exchange rate risks.

According to the bank, FCNR(B) deposits offer tax-free interest income in India and allow full repatriation of both principal and interest upon maturity, subject to applicable regulations. Premature withdrawals are permitted after a one-year lock-in period in line with banking norms.

In addition to FCNR(B) deposits, Equitas Small Finance Bank offers rupee-denominated investment options for NRIs through NRE and NRO fixed and recurring deposits. The bank currently offers interest rates of up to 7.75% per annum on fixed deposits with a tenure of 888 days and up to 7.10% per annum on recurring deposits for tenures between 12 and 15 months.

The move is aimed at attracting overseas deposits by offering NRIs a combination of higher returns, currency stability, and investment flexibility.