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Economics1h 54m 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.

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India, US

Who
NRIs, Jefferies, SBI, Reserve Bank of India (RBI), Ankur Choudhary, Dr. Soumya Kanti Ghosh
What
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.
When
Fri, 12 Jun 2026 09:17:55 GMT · 1h 54m ago
Where
India, US ·
Why
The RBI's new Forex Swap Facility aims to encourage banks to offer higher interest rates on FCNR(B) deposits to NRIs by fully covering currency risk.
The Frontline Impact

How this affects you

Jefferies predicts 17-27% annual returns for Non-Resident Indians leveraging FCNR(B) deposits due to the RBI's new forex swap support, but SBI warns that a narrowed India-US interest rate gap limits the benefits of such leverage compared to past schemes. This situation presents both significant opportunities for enhanced returns for NRIs and risks related to changes in borrowing rates.

Story chain

9 events in this thread
  1. Economics1h 54m 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. Currently Reading1h 54m 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.
  3. Economics1h 54m 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. Economics1h 54m 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 5m 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 5m 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 5m 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 29m 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 29m 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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