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Economics1h 58m 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.

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India, US

Who
Jefferies, SBI, Ankur Choudhary (Co-Founder and Chief Executive Officer at Belong), Dr. Soumya Kanti Ghosh (Group Chief Economic Adviser, State Bank of India), NRIs
What
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.
When
Fri, 12 Jun 2026 09:17:55 GMT · 1h 58m ago
Where
India, US ·
Why
The RBI announced a US Dollar-Rupee Forex Swap Facility on May 8 for newly raised FCNR(B) deposits by banks, enabling banks to offer higher rates to NRIs without exchange rate concerns.
The Frontline Impact

How this affects you

NRIs can seek to enhance returns on Foreign Currency Non-Resident (Banking) deposits in Indian banks by utilising borrowed funds, but the narrower interest rate differential between India and the US may limit the effectiveness of this strategy compared to past opportunities.

Story chain

9 events in this thread
  1. Economics1h 58m 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 58m 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. Currently Reading1h 58m 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.
  4. Economics1h 58m 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.
    Open article
  5. Economics4h 9m 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 9m 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 9m 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 32m 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 32m 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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