Indian banks cut FCNR rates after RBI ends swap facility
Business
Indian banks have quickly cut their Foreign Currency Non-Resident (FCNR) deposit rates after the Reserve Bank of India ended its special swap facility on August 31.
This facility, which launched on June 8, let banks offer higher returns on US dollar deposits.
Now that it's gone, those attractive rates have been rolled back.
HDFC, ICICI, SBI cut FCNR rates
HDFC Bank dropped its five-year US dollar FCNR rate to 3.15%, ICICI Bank lowered its to 2.90%, and SBI now offers 3.05%.
These changes follow the RBI's move and bring rates back in line with normal market conditions.
By August 21, Indian banks had pulled in $65.4 billion through this scheme, so it definitely made a splash while it lasted!