India, June 12 -- Several banks, including ICICI and SBI, on Thursday launched a new Foreign Currency Non-Resident (FCNR (B)) deposit scheme offering higher interest rates for Non-Resident Indians. The NRI fixed deposit interest rate hikes came within days of the RBI announcing a foreign currency swap window for banks till September 30, thus effectively absorbing the currency hedging cost that banks had to bear on such deposits and leaving room for banks to raise deposit rates. The move is aimed at attracting foreign currency deposits from Non-Resident Indians (NRIs), and experts believe that about USD 60-70 billion foreign capital could flow in under the deposit scheme.

Following this, ICICI Bank, on its website, said it is offering 6.5...