Yes Bank has lifted rates on foreign‑currency non‑resident deposits by up to 335 basis points, positioning itself among the first Indian lenders to chase offshore capital. The private‑sector bank now offers 7% on three‑year FCNR(B) accounts, 7.05% on four‑year and 7.10% on five‑year tenures, far above its earlier ceiling of 4%. The bank expects the premium to draw sizable inflows.

The move follows the Reserve Bank of India’s recent regulatory easing, which encourages banks to mobilise foreign‑currency deposits between June and September and introduces a dollar‑rupee swap line to lower funding costs. By offering higher yields, Yes Bank aims to attract NRIs and foreign investors seeking better returns than the domestic market, thereby supporting a weakened rupee. Such inflows can bolster exchange reserves amid markets.

For investors, the rate hike signals that Indian banks are willing to price in the currency risk premium to bring in hard currency, potentially narrowing the yield gap with overseas bonds. The higher payouts also raise Yes Bank’s cost of funds, but the strategy could improve its deposit base and liquidity at a time when the rupee faces persistent pressure.