Page 6 - Fcnr(b)
FCNR (B) returns: Rate differential may cloud inflows despite RBI support
Bankers expect FCNR(B) inflows of $20-45 billion as RBI absorbs hedging costs, though a much narrower India-US interest-rate differential may limit leverage-driven participation
 "FCNR (B) returns: Rate differential may cloud inflows despite RBI support")
Rupee rebounds, bond yields ease as oil prices retreat, inflow hopes rise
The currency recovered from recent losses and bond yields softened as lower crude prices and expectations of fresh foreign inflows improved market sentiment
 "Rupee rebounds, bond yields ease as oil prices retreat, inflow hopes rise")
RBI opens FCNR(B) swap window to attract foreign-currency deposits
The facility will allow banks to raise fresh three- to five-year FCNR(B) deposits at lower hedging cost, helping support foreign inflows and the rupee
 "RBI opens FCNR(B) swap window to attract foreign-currency deposits")
RBI launches FCNR(B) swap facility, allows banks flexibility on rates
The forex swap window, open until October 2026, will enable banks to mobilise fresh FCNR(B) deposits while the RBI bears the hedging cost on eligible inflows
NRI deposit flows fall 16% to $11.2 bn in Apr-Dec 2025, shows RBI data
Inflows into NRI deposits fell nearly 16% in Apr-Dec 2025 to $11.2 bn, led by a sharp drop in FCNR(B) flows, though outstandings across NRE and NRO accounts continued to rise
 "NRI deposit flows fall 16% to $11.2 bn in Apr-Dec 2025, shows RBI data")
Monetary policy: Rupee reverses initial gains on concern over RBI moves
Bond yield hardens on rate status quo
 "Monetary policy: Rupee reverses initial gains on concern over RBI moves")
RBI policy: Hike in FCNR(B) deposit rate may have limited impact on flows
An FCNR (B) account lets customers maintain a fixed deposit in India in freely convertible foreign currencies for a tenure ranging from one to five years
 "RBI policy: Hike in FCNR(B) deposit rate may have limited impact on flows")
Foreign fund flows remain weak for banks despite RBI's liberal steps
The measures have brought in $1.5-2 billion so far; response to relaxed FX norms tepid as US rates higher, RBI not acting as counterparty
 "Foreign fund flows remain weak for banks despite RBI's liberal steps")
FCNR-B deposit pool shrinks sharply in Q3 on redemption
The deposits stood at $20.85 bn in December 2016 from $44.11 bn at the end of September 2016
 "FCNR-B deposit pool shrinks sharply in Q3 on redemption")
FCNR redemptions: Time to gear up for increased market volatility
Historically, it is seen that a volatile currency market is contagious and transfers the volatility to equity markets
 "FCNR redemptions: Time to gear up for increased market volatility")