The Latest Breaking News from FCNR B

Forex inflows under RBI swap facility rise to USD 143.6 billion

The Reserve Bank of India said foreign exchange inflows under its special USD-INR forex swap facility rose to USD 143.596 billion as of August 31, up about USD 7.22 billion from the earlier provisional figure of USD 136.377 billion. FCNR(B) deposits accounted for USD 132.98 billion, while OFCBs and ECBs…

The Economic Times · Sep 21

FCNR(B) inflows can boost bank lending, support festive demand: Former Standard Chartered Bank MD Sanjeev Mehta

Foreign Currency Non-Resident Bank deposits are significantly enhancing banking liquidity, providing an essential boost for lending opportunities. This heightened liquidity is expected to meet the anticipated consumer demand during the festive season. To avoid financial losses from idle deposits, banks must judiciously allocate these funds. Additionally, this surge in inflows…

The Economic Times · Sep 10

FCNRB deposits: Why bank investors should watch RoE, not just NIM

FCNR(B) deposits could boost banks’ return on equity despite a mild impact on net interest margins, according to Anand Rathi. Exemptions from reserve requirements, capital-efficient lending and longer tenors could improve returns. The brokerage analysed four scenarios, including deposit costs, leverage and rising rates, to assess the scheme’s benefits.

The Economic Times · Sep 3

RBI's $56.8 billion forex drive: How diaspora deposits reshape India's currency risk and balance sheet

India's special forex package has successfully garnered over fifty-six billion dollars in deposits, surpassing expectations. This increased inflow has prompted an extension of its deadline, ushering in a new era of currency risk for the central bank. Unlike previous models, banks now focus more on leveraging their assets than merely…

The Economic Times · Aug 16

Indian Bank plans to garner $400 million via ECB this week: MD Binod Kumar

Indian Bank plans to raise $400 million via External Commercial Borrowings this week. The bank may raise an additional $600 million through ECB before December 2026. It also aims to gather USD 2 billion from FCNR(B) deposits, seeing good demand. The Reserve Bank of India has already closed its concessional…

The Economic Times · Aug 16

19x leverage on FCNR(B) deposits and high returns may not work for NRIs based in Singapore in this case

FCNR (B) FD: For NRIs, the potential gains from FCNR(B) deposits may be undermined by Singapore's tax policies. Interest earnings from Indian banks are recognized as originating from Singapore, triggering local taxes that can diminish effective yields on these deposits. Conversely, payments made to Indian banks' Singapore branches do not…

The Economic Times · Aug 6

FCNR (B) vs NRE 5-year FD: Which can give higher maturity on $50,000 investment? Know currency risk

FCNR(B) vs NRE currency risk: FCNR(B) and NRE deposits offer distinct investment avenues for non-resident Indians. FCNR(B) deposits provide currency protection, while NRE deposits carry exchange rate risk. Calculations show NRE deposits can yield higher returns if the rupee strengthens. However, the rupee has historically depreciated against the US dollar.…

The Economic Times · Jul 23

How NRIs, OCIs can get 45% annual return on $1 lakh FCNR (B) deposit as this bank in India offers 19X leverage; Should you go for it?

HSBC Bank's IFSC unit offers Non-Resident Indians significant leverage on FCNR(B) deposits. This strategy allows investors to borrow up to nineteen times their initial deposit amount. The potential for amplified returns arises from the spread between deposit earnings and borrowing costs. However, this leverage strategy carries risks if borrowing costs…

The Economic Times · Jul 20

FCNR(B) FD vs NRE FD: Where can NRIs earn more on $50,000 investment? Compare returns, currency risk and tax benefits

Non-resident Indians (NRIs) and overseas citizens of India (OCIs) can consider investing in FCNR(B) and NRE fixed deposits to achieve reliable returns. While FCNR(B) deposits safeguard against currency fluctuations as they are held in foreign currency, NRE deposits offer opportunities in Indian rupees without such protection. Ultimately, your decision should…

The Economic Times · Jul 8

FCNR deposit in demand: $1,277 extra interest on $10,000 investment by NRIs after RBI's latest move?

FCNR interest rates: The Indian government will now cover hedging costs for fresh 3 to 5-year FCNR(B) deposits until September 30, 2026. This move allows banks to offer higher interest rates to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). An NRI may now earn an additional $1,277 on…

The Economic Times · Jun 10