RBI move sparks race among banks to raise FCNR(B) deposit rates; smaller lenders offer over 7% on USD deposits

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Banks are aggressively increasing interest rates on NRI dollar deposits. This move follows a special RBI dispensation to boost foreign currency inflows. Several lenders are now offering over 7 percent on US dollar FCNR(B) deposits. This initiative is expected to attract significant foreign currency into India. The competition among banks is intensifying to secure these valuable overseas funds.