If you or a family member holds an FCNR(B) deposit, the interest you're earning on it may get a trim in the coming months.
RBI's new currency rules make it pricier for banks to protect themselves against currency swings on these dollar deposits — they now need to set aside 20% as reserve, and dollar-rupee forward costs have gone up too.
On a $10,000 (about ₹8.3 lakh) FCNR(B) deposit, even a 0.25-0.5% rate cut works out to roughly ₹2,000-4,000 less interest a year.
What this means for you
- If you have an FCNR(B) deposit maturing soon, locking in today's rate could save ₹2,000-4,000 a year on every $10,000 parked.
- New FCNR(B) deposits opened over the next few months may carry lower rates than what banks offer right now.
- Your rupee savings account, FD, or home loan EMI isn't touched by this — it's specific to foreign-currency deposits.
What you can do
- If you're an NRI or helping family park foreign currency savings, consider locking in current FCNR(B) rates this week rather than waiting.
- Compare FCNR(B) rates across SBI, HDFC, and ICICI before renewing — some banks may hold their rates a little longer than others.
Nothing to worry about if you don't hold dollar deposits — but if you do, a little timing now goes a long way.
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