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Economics1h 53m ago

Jefferies suggests NRIs could see 17–27% annual returns by leveraging FCNR(B) deposits, but SBI warns that a narrowed India-US interest rate gap will limit these benefits.

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India, US

Who
Non-Resident Indians (NRIs), Jefferies, State Bank of India (SBI), Reserve Bank of India (RBI), Ankur Choudhary (Co-Founder and CEO of Belong)
What
Jefferies suggests NRIs could see 17–27% annual returns by leveraging FCNR(B) deposits, but SBI warns that a narrowed India-US interest rate gap will limit these benefits.
When
Fri, 12 Jun 2026 09:17:55 GMT · 1h 53m ago
Where
India, US ·
Why
The RBI announced a US Dollar-Rupee Forex Swap Facility for newly raised FCNR(B) deposits by banks on May 8, allowing banks to offer higher rates to NRIs without currency risk.
The Frontline Impact

How this affects you

NRIs are exploring leveraging new, higher-rate FCNR(B) deposits in India to potentially earn significantly enhanced returns, despite a narrower interest rate gap between India and the US compared to previous similar schemes. This strategy's effectiveness hinges on changes in borrowing rates and prudent execution, with Jefferies estimating high annual returns if successful.

Story chain

9 events in this thread
  1. Economics1h 53m ago
    Jefferies estimates Non-Resident Indians could achieve 17–27% annual returns by leveraging FCNR(B) deposits, but SBI cautions about the diminished India-US interest rate gap.
    Open article
  2. Economics1h 53m ago
    The RBI introduced a US Dollar-Rupee Forex Swap Facility on May 8 for newly raised FCNR(B) deposits by banks, allowing banks to offer higher rates to NRIs by covering currency risk.
    Open article
  3. Economics1h 53m ago
    Jefferies projects 17–27% annual returns for NRIs leveraging FCNR(B) deposits, though SBI cautions that the reduced India-US interest rate gap will constrain leverage benefits despite new RBI forex swap support and elevated bank rates.
    Open article
  4. Currently Reading1h 53m ago
    Jefferies suggests NRIs could see 17–27% annual returns by leveraging FCNR(B) deposits, but SBI warns that a narrowed India-US interest rate gap will limit these benefits.
  5. Economics4h 4m ago
    Nikhil Gupta, India Economist at CLSA, expects the FCNR deposit scheme and ECB-related steps to bring in $30-50 billion, significantly improving India's balance of payments position.
    Open article
  6. Economics4h 4m ago
    Nikhil Gupta, India Economist at CLSA, expects the FCNR deposit scheme and ECB-related steps taken by the Reserve Bank of India (RBI) to bring in $30-50 billion, significantly improving India's balance of payments position.
    Open article
  7. Economics4h 4m ago
    Nikhil Gupta, India Economist at CLSA, expects the FCNR deposit scheme and ECB-related steps to bring in $30-50 billion, significantly improving India's balance of payments position.
    Open article
  8. Economics5h 27m ago
    Competition among banks to attract foreign currency deposits from Non-Resident Indians (NRIs) has intensified after the Reserve Bank of India (RBI) announced a special dispensation aimed at boosting US dollar inflows.
    Open article
  9. Economics5h 27m ago
    Competition among banks to attract foreign currency deposits from Non-Resident Indians (NRIs) has intensified after the Reserve Bank of India (RBI) announced a special dispensation aimed at boosting US dollar inflows.
    Open article

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