FCNR(B) Deposits: A Viable Boost for Indian Banks Amidst Tight Funding Pressures
Published on: June 15, 2026, 1:34 p.m. | Source: Devdiscourse
Systematix Research shows that RBI's concessional swap facility for FCNR(B) deposits enhances banks' net interest margins by 60 basis points, aiding in easing funding pressures. These deposits are exempted from SLR and CRR requirements, increasing profitability despite forming a small fraction of total deposits.
