Date: June 12, 2026

Product Launch Details

Karur Vysya Bank has launched revised interest rates on its Foreign Currency Non-Resident (FCNR) deposits, specifically targeting Non-Resident Indians (NRIs). The bank is now offering up to 7.00% per annum on US Dollar (USD) FCNR deposits for tenures of three years and above, which represents the highest rate on its FCNR ladder.

Revised USD FCNR Deposit Rates

The new rate structure is effective from June 10, 2026:

| Maturity Period | Interest Rate (% p.a.) |

| 1 Year and above but less than 2 Years | 5.00% |

| 2 Years and above but less than 3 Years | 3.66% |

| 3 Years and above but less than 4 Years | 7.00% |

| 4 Years and above but less than 5 Years | 7.00% |

| 5 Years | 7.00% |

Special Terms and Conditions

The 7.00% rate applies to eligible USD FCNR deposits and carries a mandatory lock-in period of one year. No premature closure is permitted during this period. After completion of one year, premature closure may be allowed as per the Bank's existing guidelines, with interest paid at the applicable run period rate less 1% as per the Bank's Deposit Policy.

Key Customer Benefits

  • Tax-efficient returns: Interest earned on FCNR deposits is exempt from income tax in India under current tax rules
  • Full repatriability: Both principal and interest are fully repatriable
  • Currency risk mitigation: The deposit stays in foreign currency, avoiding Indian Rupee exchange risk during the tenure
  • Forward contract facility: Customers can book forward contracts to lock in exchange rates for future conversion to Indian Rupees
  • Loan against deposit: Customers can borrow against FCNR deposits without breaking them
  • Smooth account transition: Seamless transition when customer residential status changes

Management Commentary

Shri B. Ramesh Babu, Managing Director & CEO of Karur Vysya Bank, stated: "NRIs want their foreign currency savings to earn more without taking on rupee risk, and these rates answer that directly. A 7.00% return on a US Dollar deposit is a strong proposition, the interest is tax-free in India under current rules, and the principal stays fully repatriable. We expect good traction from the diaspora, particularly those who plan to bring funds back to India over the next few years."

Company Background

Karur Vysya Bank, founded in 1916, is one of India's leading private sector banks with strong presence across retail, MSME and agricultural banking segments. As of March 31, 2026:

  • Total business: ₹2,14,420 crore
  • Deposits: ₹1,15,666 crore
  • Advances: ₹98,754 crore
  • Highest-ever annual net profit: ₹2,510 crore for FY26
  • Network: 901 branches and over 2,200 ATMs and cash recyclers across India

Customer Access Channels

NRIs can apply through:

  • KVB's digital banking channels
  • Nearest KVB branch

Full rates and terms are available on the bank's website at https://www.kvb.bank.in/nri/products/deposits/fcnr-deposits/