FCNR(B)

The lender reported higher quarterly profit on strong growth in net interest income and advances, while saying it has already mobilised $150 million under the FCNR(B) scheme

The rupee weakened as initial FCNR(B) deposit inflows fell short of market expectations, though analysts said it was too early to assess the success of the RBI's measures

Some foreign banks are offering leverage of up to 19 times FCNR(B) deposits to attract NRI funds as lenders intensify mobilisation efforts under the RBI's special scheme

Takes stock of FCNR (B) deposit mobilisation

Q1-FY27 numbers, according to Anirudh Garg, fund manager & partner, INVasset PMS, are likely to show soft margins across the board, but private banks will be the first to show the NIM trough is over

Foreign banks' India exposure limits may shape FCNR(B) inflows as Indian lenders tweak deposit rates and tenors to attract NRI funds under the RBI scheme

Banks expect the RBI's FCNR(B) deposit scheme to attract major inflows from the Gulf, Singapore and Hong Kong, with mobilisation expected to accelerate in August

Standard Chartered expects strong FCNR(B) inflows from key overseas centres as RBI's latest measures boost foreign currency deposits and cross-border banking

Large banks may offer up to 9x leverage against FCNR(B) deposits, potentially helping NRIs earn double-digit returns under the RBI's swap scheme

Today's opinions examine RBI incentives for FCNR deposits, the economic legacy of Brexit, India's trade strategy, institution-building for growth and lessons from successful founders

Certificate of deposit issuances crossed Rs 1 trillion in the fortnight ended June 15 as banks sought funding amid a widening gap between credit and deposit growth

Central bank permits loans and standby letters of credit against FCNR(B) deposits under the swap facility, while leaving leverage decisions to lenders

The Reserve Bank of India (RBI) on Tuesday said the swap facility for foreign currency non-resident deposits (FCNR) is a simple foreign exchange swap, but only covers the original principal amount, not the interest. The RBI also said banks are permitted to extend loans to the FCNR (B) account holders and mark a lien on such deposits, the central bank said in FAQs on Swap Facility for FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowing. On June 8, the RBI introduced a special US dollar-rupee forex swap scheme to enable banks to mobilise fresh FCNR (B) deposits without hedging risk, a move aimed at attracting foreign capital. Banks have been permitted to offer higher returns on dollar deposits in an FCNR(B) Account with a tenure of three to five years. Foreign Currency Non-Resident (Bank) deposits help NRIs earn in foreign currency while protecting savings from rupee depreciation risk. "Reserve Bank of India will be providing a Forex Swap for the

While FCNR(B) deposit inflows fell sharply from a year earlier, overall inflows into non-resident deposit schemes edged up, supported by growth in NRE deposits

SBI rolled out a 9x leverage facility under RBI's FCNR(B) scheme as India's forex reserves fell sharply on lower gold valuations

FCNR(B) deposits have lost ground in NRI portfolios over the past decade, prompting the RBI to ease rate restrictions to attract fresh inflows

Private-sector lender increases FCNR(B) deposit rates following RBI's forex swap facility and temporary removal of the interest rate ceiling on eligible deposits

Banks have been asked to furnish daily details of FCNR(B) deposits, ECBs and OFCBs mobilised under the RBI's concessional swap facilities announced on June 8

Banks, especially smaller lenders, may raise FCNR(B) deposit rates further after RBI temporarily removed the interest-rate ceiling on select maturities

The central bank has temporarily withdrawn interest rate ceilings on select FCNR(B) and NRE deposits, giving banks greater flexibility to attract NRI funds