New Delhi, Sept. 2 -- Several banks have reduced FCNR(B) deposit interest rates after the special swap window closed. The government advanced the offer's deadline from 30 September to 30 August 2026. Cuts have mainly affected 3-year to 5-year deposits, which previously offered higher returns.

In June, the Reserve Bank of India (RBI) announced relief on hedging costs. The government would bear those costs for eligible deposits under the special arrangement.

Many banks consequently raised rates and attracted United States dollar deposits. However, that inflow prompted the government to advance the deadline.

An FCNR(B), Foreign Currency Non-Resident (Bank), account lets customers hold deposits in 6 foreign currencies. It is available to N...