Foreign banks showed strongest policy easing transmission during the rate-cut cycle. They lowered lending rates more sharply than other bank types. Deposit rates also saw steeper reductions from foreign banks. The Reserve Bank of India reduced its repo rate by 1.25 percentage points. This easing cycle occurred between February 2025 and May 2026.

In a remarkable financial boost, India's central bank recorded significant foreign exchange inflows of $20.72 billion, primarily through a swap facility provided by the Reserve…

Foreign banks showed strongest policy easing transmission during the rate-cut cycle. They lowered lending rates more sharply than other bank types. Deposit rates also saw steeper…