FCNR(B) Deposits Could Deliver Rs 5.5 Trillion in Notional Gains for Banks, RBI: SBI Research
SBI Research has argued that Foreign Currency Non-Resident Bank deposits under the FCNR(B) scheme could generate as much as Rs 5.5 trillion in notional profit for banks and the Reserve Bank of India, challenging earlier concerns that the programme would impose heavy losses. The report says the mobilised foreign currency funds can support additional credit growth, while hedging costs remain manageable and the RBI may also benefit from improved profitability.
