Ujjivan SFB Offers 7.50% on FCNR(B) Deposits After RBI Rule Easing

Ujjivan SFB’s 7.50% dollar deposit rate gives NRIs a stronger return, while its 3-to-5-year tenure requires careful planning before funds stay committed for years ahead.

Key Highlights
 

• Ujjivan SFB raised its USD FCNR(B) rate from 7.13% to 7.50% for 3 to 5-year deposits.
   
• The bank had increased the same rate to 7.13% on June 12 as lenders competed for NRI dollar savings.

Ujjivan Small Finance Bank increased its USD FCNR(B) deposit rate to 7.50% per annum on July 2, 2026. The offer is 37 basis points above the earlier 7.13% rate. Business Standard confirmed the revision on July 2.

The higher return may draw more NRI dollars into Indian banks. Depositors lose some flexibility, though. Ujjivan says no interest is payable if the deposit is closed within 1 year.

What Changed In Ujjivan’s Dollar Deposit?

The revised rate applies to USD deposits held for 3 to 5 years.

Moneycontrol reported on June 12 that Ujjivan had raised the rate to 7.13%. LoansJagat reported on June 11 that SBI, HDFC Bank, AU Small Finance Bank, Karur Vysya Bank and Central Bank of India increased FCNR(B) rates by up to 300 basis points.

How Could The 7.50% Rate Affect NRI Families And India?

NRIs holding dollars can earn the stated return without converting the principal into rupees. Ujjivan says eligible NRI interest is tax-exempt in India.

Business Standard and The Economic Times published the following rates on July 2.

LoansJagat’s calculation for this article shows the gain. On USD 10,000, 7.50% produces USD 750 in gross annual interest, USD 37 more than 7.13%. Compared with 6%, the yearly difference is USD 150.

What Do Bankers Expect, And What Should Depositors Check?

Hitendra Jha, Ujjivan’s Head of Retail Liabilities, TASC and TPP, called 7.50% one of the industry’s most competitive rates. Reuters reported on June 8 that PNB CEO Ashok Chandra expected banks to raise USD 35 billion to USD 40 billion. PNB targeted USD 2.5 billion to USD 3 billion.

Federal Bank Executive Director Harsh Dugar told Reuters that the India-US rate gap is now 1% to 2%, against 5% to 6% in 2013. Depositors should compare remittance costs, closure rules and service access. DICGC cover is limited to ₹5 lakh per depositor per bank.

Conclusion

Ujjivan’s 7.50% offer lifts returns on long-tenure NRI dollar deposits. Access needs, insurance limits and bank charges should guide the final choice.

FAQs

What Is An FCNR(B) Deposit?

A foreign-currency fixed deposit for eligible NRIs, PIOs and OCIs.

Who Gets Ujjivan’s 7.50% Rate?

Eligible customers booking USD deposits for 3 to 5 years.

Can It Be Closed Within 1 Year?

Yes, but Ujjivan says no interest will be paid.

Would NRIs Move Their USD Savings to Ujjivan SFB for a 7.50% FCNR(B) Deposit?

Some NRIs may consider it because the 7.50% return is higher than many large-bank offers. The final choice will depend on lock-in terms, bank service, transfer costs and deposit protection.

What Are the Pros and Cons of an FCNR Deposit?

Pros: The deposit stays in foreign currency, reduces rupee exchange risk, earns fixed interest and allows repatriation of principal and interest.

Cons: Early withdrawal may reduce or cancel interest, exchange charges can cut returns, and deposit insurance remains limited for large amounts.