New Delhi [India], June 10 (ANI): Punjab National Bank (PNB) has announced revised Foreign Currency Non-Resident (Bank) [FCNR(B)] deposit rates of up to 6.10 per cent following the Reserve Bank of India's recent measures aimed at boosting foreign currency inflows.

In an exclusive interview with ANI, PNB Chairman and Managing Director Ashok Chandra on Wednesday said the bank has finalised fresh FCNR(B) rates and expects to mobilise around USD 2.5 billion through the scheme.

'Today morning only, in fact, first, you are the first channel where I am going to announce. Today morning we had that ALCO committee meeting and we have finalised the rate for three years, four years and five years,' Chandra said.

According to him, the bank has fixed the FCNR(B) deposit rate at 6 per cent for deposits of up to one million for a three-year tenure. The rate has been set at 6.05 per cent for deposits with a maturity period of four years and 6.10 per cent for deposits with a tenure of five years.

'Up to one million FCNR (B) deposit rate will be 6 per cent. Three to four year period will be 6.05 and four to five years it will be 6.10 per cent,' he said.

Chandra said the revised rates would make India an attractive destination for Non-Resident Indians (NRIs) looking to invest their foreign currency deposits.

'It will be a very, very attractive rate. Because globally, if you see, even the US treasury rate, it is somewhere around 4.25 per cent now. So I think for the investor and for the NRIs, I think India becomes a very good destination to invest now,' he added.

The PNB chief said the bank expects to mobilise around USD 2.5 billion through FCNR(B) deposits under the revised framework.

'So we are expecting close to around 2.5 billion USD. Our bank should mobilise,' he said.

He further noted that the overall banking system could attract substantial inflows through the FCNR(B) route.

'Rough estimate is, in fact, our team has also done the exercise, our strategy and economic department. So roughly around 35 to 40 billion USD, that should come through this route,' Chandra said.

The announcement comes days after the RBI unveiled a series of measures to facilitate foreign currency inflows and support the external sector.

On Monday, the central bank exempted fresh FCNR(B) deposits mobilised by banks from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements.

The RBI said the exemption would apply to fresh FCNR(B) deposits with a minimum tenor of three years and a maximum tenor of five years raised up to September 30, 2026.

The move is aimed at encouraging banks to attract more foreign currency deposits under the announced US Dollar-Rupee swap facility and improve dollar liquidity in the financial system.

With banks now offering significantly higher FCNR(B) deposit rates, the latest RBI measures are expected to help attract overseas deposits from NRIs and support foreign currency inflows into the country. (ANI)