NRI Deposits Surge: Will Your FD Rate Rise Soon?

RBL Bank is tying up with Emirates NBD to attract more NRI money through FCNR deposits. When banks chase foreign deposits aggressively, domestic FD rates and lending margins often shift — and that affects your savings and loans.

Here's what happened: RBL Bank is partnering with UAE-based Emirates NBD to tap Indian diaspora customers for NRI deposits and trade finance business.. The bank has already raised around $150 million through the FCNR(B) scheme, which lets NRIs park foreign currency deposits in Indian banks.. RBL expects its net interest margins to improve from the second quarter as this cheaper foreign-currency funding replaces costlier domestic borrowing..

What you should do: Compare FCNR and NRE fixed deposit rates across banks if you have a family member abroad — rates are currently competitive and tax-free on interest.. Watch RBL Bank's FD rate updates over the next two quarters; improving margins may allow them to offer better rates to retain retail depositors.. If you hold an RBL savings account or FD, check their latest rate card on their website — mid-size banks often quietly revise rates without announcement..

FCNR(B) deposits are fully repatriable and interest is tax-free in India — if you have a close NRI relative, gifting or jointly planning around these accounts can be a legal tax saver.