FCNR-B: Clarity on Foreign Branch Leveraging Key; Watch out for FAQ from RBI

研报英文原文证据摘录

FCNR-B: Clarity on Foreign Branch Leveraging Key; Watch out for FAQ from RBI

Financials

Equity Research

June 12, 2026

Exhibit 6 - Comparing 2013 & 2026 FCNR Scheme

Parameter 2013 FCNR-B Scheme 2026 FCNR-B Scheme

Taper-tantrum pressure; sharp INR depreciation & external Renewed need to attract foreign currency inflows, support

Macro backdrop

funding stress external stability amid global volatility

Encourage fresh FCNR(B) deposit mobilisation as part of a

Objective Attract foreign currency inflows quickly and stabilise INR broader foreign inflow package, including measures on

government securities, FPI limits and ECBs

Tenor Minimum 3-years 3–5 years

RBI allowed banks to swap FCNR-B dollars into INR at a RBI will bear the full hedging cost on eligible fresh FCNR(B)

Swap/ Hedge cost

concessional fixed cost of 3.5% p.a. deposits

Banks permitted to offer non-fund based facilities, Similar provision continues, allowing non-fund based facilities

Customer leverage

enabling leveraged FCNR(B) placements to support leveraged deposit mobilisation

Covers both fresh mobilisation and rollover of maturing

Deposit coverage Limited to fresh FCNR(B) deposits

FCNR(B) deposits

Banks obtained INR funding at a subsidised hedge cost Banks can raise FCNR(B) deposits without bearing hedge cost,

Benefit to Banks

versus market forward premia improving economics of mobilising NRI deposits

CRR and SLR Exempt from CRR and SLR Exempt from CRR and SLR

Banks could offer attractive FCNR(B) rates; NRI depositors Scope for more competitive FCNR(B) rates driven by improved

Benefit to NRIs

also used leverage to enhance returns bank economics and zero hedging costs

.

Source: RBI, Jefferies

Exhibit 7 - FCNR deposits saw sharp rise to US$40bn during the swap window (Sep-Nov-13) vs. US$15bn

prior to that