Ujjivan Small Finance Bank Revises USD FCNR(B) Deposit Rate to 7.50% p.a.

Ujjivan Small Finance Bank has raised the annual interest rate on its U.S. dollar-denominated Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits to 7.50%. This adjustment is in line with the Reserve Bank of India's (RBI) recent policy measures aimed at encouraging higher inflows of foreign currency into the country's banking system.

The FCNR(B) deposit scheme is designed for non-resident Indians and Indian citizens looking to hold their funds in foreign currency. The increased interest rate could make these deposits a more attractive option as an investment, particularly when considering global interest rate trends.

By revising the rate, Ujjivan Small Finance Bank aims to bolster its foreign exchange reserves and offer its customers competitive returns on their dollar-denominated holdings. It is anticipated that other financial institutions in India may follow suit in an effort to attract foreign currency deposits.

The bank's announcement comes at a time when the RBI is actively seeking to support the rupee and improve India's current account balance. Adjusting interest rates on specific deposit types is a key mechanism employed by the central bank to manage foreign exchange markets and capital flows.