We consider the effect of a local interatomic repulsion on synthetic heterostructures where a discrete synthetic dimension is created by Raman processes on top of SU(N)-symmetric two-dimensional lattice systems. At a filling of one fermion per site, increasing the interaction strength, the system is driven towards a Mott state which is adiabatically connected to a band insulator. The chiral currents associated with the synthetic magnetic field increase all the way to the Mott transition, where they reach the maximum value, and they remain finite in the whole insulating state. The transition towards the Mott-band insulator is associated with the opening of a gap within the low-energy quasiparticle peak, while a mean-field picture is recovered deep in the insulating state.
