FCNR(B) deposit rates fall after special swap window closes: Check new interest rates for Axis Bank, SBI, HDFC and more

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 NRIs, OCIs and PIOs. Benefits include tax-free interest, easy fund repatriation and protection against currency fluctuations.

With the benefit withdrawn, banks have started trimming their FCNR(B) rates. Here are the revised offerings from major banks.

Axis Bank

Axis Bank offers 3.25% on deposits lasting 3-4 years. Deposits below $1 million earn 2.95% for 4-year to 5-year terms. These rates apply from 1 September 2026. Previously, 3-year to 5-year deposits earned 6.25%.

HDFC Bank

HDFC Bank offers 3.50% for 3 years to less than 4 years. It offers 3.15% for 4-5 years. Both rates apply from 1 September 2026. Earlier, 3-year to 5-year deposits earned the bank’s highest rate of 6.25%.

ICICI Bank

ICICI Bank offers 3.25% for terms between 3-5 years. The rate applies from 1 September 2026. Previously, such deposits earned the bank’s highest FCNR(B) rate of 6.25%.

Kotak Mahindra Bank

Kotak Mahindra Bank offers 3.40% for 3 years to under 4 years. It pays 3.20% for four years to under 5 years. Five-year deposits now earn 3%. These rates apply from 1 September 2026. Earlier, 5-year deposits above $0.5 million earned 6.30%. That previous rate applied from 1 August 2026.

Punjab National Bank

Punjab National Bank revised its rates from 1 September 2026. Five-year deposits below $1 million earn 3.06%. They previously earned the bank’s highest rate of 6.50%. Three-year to under 4-year deposits now earn 3.25%, down from 6.40%. The earlier rate had applied from 1 August 2026.

State Bank of India

State Bank of India offers 3.35% for 3 years to under 4 years. It pays 2.95% for 4 years to under 5 years. Five-year deposits earn 3.05%. Earlier, 5-year deposits above $1 million earned the bank’s highest 6% rate. Equivalent deposits up to $1 million earned 5.75%.