Indian Banks Slash Foreign Currency Deposit Rates Following RBI Swap Window Closure

Indian banks slash FCNR deposit rates by up to 310 basis points

Indian banks have lowered interest rates on foreign-currency deposits significantly. This action follows the closure of the Reserve Bank of India's special swap window. Banks offered unusually high rates to attract overseas funds during the ten-week period. This special facility enabled lenders to provide substantially higher returns to depositors. The strong inflows prompted the RBI to advance the closure of this window.