Following this RBI decision, banks immediately lowered FCNR interest rates; check the new rates..

The golden era for Non-Resident Indians (NRIs) to earn substantial interest in India on their dollar earnings has, for the time being, come to a halt. Major banks in the country—including State Bank of India (SBI), HDFC Bank, and ICICI Bank—have drastically cut interest rates on Foreign Currency Non-Resident (FCNR) deposits. These cuts extend up to 310 basis points. Banks took this major step immediately after the special swap window initiated by the Reserve Bank of India (RBI) closed. The race to mobilize foreign funds, which had been intense over the past 10 weeks, has now subsided.

**The Math Behind the Sharp Drop in Interest Rates**