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The Economic Times

Economy / The Economic Times

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Banks lure NRIs with high-return FCNR(B) deposits, warn of leverage risks

Banks are attracting NRI dollar deposits through RBI's FCNR(B) window. These deposits offer projected returns of thirteen to sixteen percent. Customers can borrow multiple times their capital to amplify these dollar yields. However, early redemption carries substantial penalties and lender control over pledged funds. Investors face liquidity constraints and regulatory risks with these leveraged products.

22 Jul 2026 12:26 am