Several banks have reduced their FCNR (B) deposit interest rates after the government’s deadline for the special swap window offer ended on August 31, 2026. The rate cuts have particularly been made in deposits of three to five years, which had higher interest rates after the Reserve Bank of India (RBI) announced a relief on hedging costs.The RBI in June 2026 had announced that the government would bear the hedging cost on 3-5-year FCNR (B) deposits till September 30, 2026. After this relief, many banks increased interest rates on their 3 and 5-year Foreign Currency Non-Resident (FCNR (B) fixed deposits. After they cut their interest rates on these FDs, banks drew huge USD deposits through FCNR (B) deposits. As a result, the government advanced the deadline to August 31, 2026.With the special benefit ending on August 31, banks have started trimming their FCNR (B) interest rates. Here is a look at the latest rates offered by major banks.What is an FCNR(B) account?An FCNR (B) account allows Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and People of Indian Origin (PIOs) to maintain deposits in six foreign currencies, offering tax-free interest, easy repatriation of funds and protection against exchange rate fluctuations.Revised HDFC Bank FCNR (B) interest ratesHDFC Bank now offers an FCNR (B) interest rate of 3.50% on deposits with a tenure of three years to less than four years and 3.15% on deposits with a tenure of four years to up to five years. These rates are applicable from September 1, 2026.Earlier, HDFC Bank offered its highest FCNR (B) interest rate of 6.25% on deposits with tenures of three years to five years.Revised ICICI Bank FCNR (B) interest ratesICICI Bank now offers an FCNR (B) interest rate of 3.25% on deposits with a tenure of three years to up to five years. The rate is applicable from September 1, 2026.Earlier, ICICI Bank offered its highest FCNR (B) deposit interest rate of 6.25% on deposits of three years to five years.Revised SBI FCNR (B) interest ratesState Bank of India (SBI) is offering an FCNR (B) interest rate of 3.35% on deposits with a tenure of three years to less than four years. The rate is 2.95% on deposits with a tenure of four years to less than five years and 3.05% on deposits with a five-year tenure.Earlier, SBI offered its highest FCNR (B) interest rate of 6% on five-year deposits of above USD 1 million. For deposits of up to USD 1 million with the same tenure, the rate was 5.75%.Revised PNB FCNR (B) interest ratesPunjab National Bank (PNB) has revised its FCNR (B) interest rates with effect from September 1, 2026. PNB had offered its highest FCNR (B) deposit rate of 6.50% on five-year deposits of less than USD 1 million, where it is now offering a 3.06% rate.The rate for deposits with a tenure of three years to less than four years has been reduced from 6.40% to 3.25%.The rate was effective from August 1, 2026.Revised Axis Bank FCNR (B) interest ratesAxis Bank now offers its highest FCNR (B) deposit rate of 3.25% on the tenure of three to four years. The rate is 2.95% on deposits with a tenure of four to five years for deposits below USD 1 million. These rates are effective from September 1, 2026.Earlier, Axis Bank offered an FCNR (B) deposit rate of 6.25% on deposits with a tenure of three to five years.Revised Kotak Mahindra Bank FCNR (B) interest ratesKotak Mahindra Bank is now offering an FCNR (B) deposit rate of 3.40% on deposits with a tenure of three years to less than four years, 3.20% on deposits of four years to less than five years and 3% on five-year deposits. These rates are applicable from September 1, 2026.Earlier, Kotak Mahindra Bank offered its highest FCNR (B) deposit rate of 6.30% on five-year deposits above USD 0.5 million. The rate was effective from August 1, 2026.