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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.

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India, US

Who
Jefferies, SBI, Ankur Choudhary, Dr. Soumya Kanti Ghosh
What
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.
When
Fri, 12 Jun 2026 09:17:55 GMT · 1h 58m ago
Where
India, US ·
Why
The RBI introduced a US Dollar-Rupee Forex Swap Facility on May 8 to enable banks to offer higher rates on FCNR(B) deposits by fully covering currency risk.
The Frontline Impact

How this affects you

NRIs leveraging foreign currency non-resident deposits in India could potentially see significantly higher returns than traditional savings, but the reduced interest rate difference between the US and India compared to a decade ago may limit the effectiveness of this strategy for many. This situation could shift investment flows for Non-Resident Indians and impact the banking sector.

Story chain

9 events in this thread
  1. Currently Reading1h 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.
  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. 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.
    Open article
  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 33m 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 33m 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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