Bank of Baroda launched two new deposit schemes in June 2026: the bob Golden Goal Deposit Scheme for retail depositors and the bob Legend FCNR(B) Deposit Scheme for Non-Resident Indians. The 555-day Golden Goal scheme offers interest rates of up to 7.4% for super senior citizens on non-callable deposits, while the FCNR(B) scheme provides NRIs with returns of up to 6.5% on five-year US dollar deposits. These launches come at a time when banks are competing aggressively for deposits, with the RBI also offering incentives to attract foreign currency inflows through FCNR(B) deposits.
What Are the Two New Deposit Schemes?
Bank of Baroda has introduced two distinct deposit products targeting different segments of depositors: a retail term deposit for general customers and a foreign currency deposit aimed at the Indian diaspora.
bob Golden Goal Deposit Scheme
The bob Golden Goal Deposit Scheme is a retail term deposit with a fixed tenure of 555 days, available for deposits below ₹3 crore. The interest rate varies by depositor category and whether the deposit is callable (permits premature withdrawal) or non-callable.
For callable deposits, the bank offers 6.75% per annum for general customers, 7.25% for senior citizens, and 7.35% for super senior citizens aged 80 years and above. For non-callable deposits, the rates are slightly higher: 6.80% for general customers, 7.30% for senior citizens, and 7.40% for super senior citizens.
Customers can open the deposit through the bob World mobile app, internet banking, or by visiting any Bank of Baroda branch. New customers do not need an existing savings account and can book the deposit directly through the bank’s website.
bob Legend FCNR(B) Deposit Scheme
The bob Legend FCNR(B) Deposit Scheme is designed for Non-Resident Indians who wish to hold their deposits in foreign currency. Under this scheme, the bank is offering interest rates on US dollar deposits based on the tenure: 6% for tenures of three years to less than four years, 6.1% for four years to less than five years, and 6.5% for five-year deposits.
These rates came into effect on June 17, 2026. The scheme follows the RBI’s recent measures to encourage foreign currency inflows by bearing the hedging cost on fresh FCNR(B) deposits raised between June 8 and September 30, 2026.
Why Are Banks Offering Higher Rates Now?
The launch of these schemes is part of a broader trend across the Indian banking sector. Banks are facing intense competition for deposits, and the RBI has created policy incentives that make it attractive for lenders to offer higher rates on foreign currency deposits.
On June 8, 2026, the RBI announced a USD-INR forex swap facility for fresh FCNR(B) deposits with maturities of three to five years. Under this facility, the central bank bears the entire hedging cost for banks raising these deposits, which is typically around 3%. By absorbing this cost, the RBI allows banks to pass on a benefit of 150 to 200 basis points to depositors. This has enabled banks to offer significantly higher interest rates on FCNR(B) deposits compared to the usual rates of 3% to 3.5% that prevailed before this measure.
Several public and private sector banks have followed suit. Canara Bank launched a scheme offering 6.5% on USD deposits for tenures of three to five years. Federal Bank offers 6.25% through its FCNR Max Deposit Scheme. Indian Overseas Bank offers 6.5% on its special FCNR(B) scheme, and State Bank of India launched its SBI Advantage FCNR(B) scheme offering up to 6%. These schemes share common features including a lock-in period of one year and restrictions on premature withdrawal.
Bankers estimate that the RBI’s initiative could attract $20 billion to $30 billion in fresh FCNR(B) deposits. Outstanding FCNR(B) deposits stood at around $34 billion at the end of March 2026. The move is seen as a revival of a similar strategy used by the RBI in 2013, which helped mobilise about $34 billion through FCNR(B) deposits and external commercial borrowings during a period of rupee volatility.
What Is an FCNR(B) Deposit?
FCNR(B) stands for Foreign Currency Non-Resident (Bank) deposit. It is a term deposit product that allows Non-Resident Indians to park their overseas earnings in a foreign currency with a bank in India, without converting the funds into Indian rupees at the time of deposit.
The key benefit of an FCNR(B) deposit is that both the principal amount and the interest earned are fully repatriable, meaning the depositor can transfer the entire proceeds to an overseas account without any restrictions. Additionally, interest earned on FCNR(B) deposits is exempt from income tax in India, making it a tax-efficient investment for NRIs.
RBI regulations permit FCNR(B) deposits for a minimum tenure of one year and a maximum of five years. They can be held in any freely convertible foreign currency, with the US dollar being the most common. Other permitted currencies include the British Pound (GBP), Euro (EUR), Australian Dollar (AUD), Canadian Dollar (CAD), and Japanese Yen (JPY). The deposits are governed by the Foreign Exchange Management Act (FEMA), 1999.
FCNR(B) deposits also protect depositors from exchange rate fluctuations. Since the deposit is held and repaid in the same foreign currency, the depositor does not face currency risk. Banks also offer loan facilities against FCNR(B) deposits, providing liquidity without requiring premature withdrawal.
About Bank of Baroda
Bank of Baroda is an Indian public sector bank headquartered in Vadodara, Gujarat. It was founded on 20 July 1908 by Maharaja Sayajirao Gaekwad III, the then Maharaja of the princely state of Baroda. The bank was nationalised by the Government of India on 19 July 1969 along with 13 other major commercial banks.
Today, it is the second largest public sector bank in India after State Bank of India. The Government of India holds a 63.97% stake in the bank. Its Managing Director and Chief Executive Officer is Debadatta Chand.
Bank of Baroda has a vast domestic network of 8,648 branches and an international presence across 24 countries with 80 overseas branches and offices. In 2019, the bank was strengthened through the amalgamation of Vijaya Bank and Dena Bank, making it the third largest bank in India by assets at that time.
Key Takeaways
- Bank of Baroda launched the bob Golden Goal Deposit Scheme, a 555-day retail term deposit for amounts below ₹3 crore, offering up to 7.4% for super senior citizens on non-callable deposits.
- The bank introduced the bob Legend FCNR(B) Deposit Scheme for NRIs, offering up to 6.5% on five-year US dollar deposits, effective from June 17, 2026.
- The RBI on June 8, 2026 announced a USD-INR forex swap facility for fresh 3 to 5 year FCNR(B) deposits, bearing the hedging cost to attract foreign currency inflows.
- FCNR(B) deposits are governed by the Foreign Exchange Management Act (FEMA), 1999, with a minimum tenure of one year and a maximum of five years.
- Bank of Baroda was founded on 20 July 1908 by Maharaja Sayajirao Gaekwad III, nationalised on 19 July 1969, and is headquartered in Vadodara, Gujarat.
