Small, medium banks offer higher rates to attract NRI deposits

Small finance banks such as AU SFB, Ujjivan SFB, and Equitas SFB are offering FCNR(B) dollar deposit rates between 7.4 percent and 7.52 percent to attract NRI customers after RBI removed the interest rate cap. AU Small Finance Bank raised its rate by 30 basis points to 7.4 percent, while Ujjivan SFB and Equitas SFB are offering 7.5 percent and 7.52 percent respectively. The banking sector has mobilised more than $26 billion in FCNR(B) deposits through the RBI-led dollar mop-up exercise, surpassing the levels seen in 2013, with public sector banks including SBI anchoring the drive.