'FCNR(B) could yield ₹5 tn notional profit for banks'
An SBI Research report contends the FCNR(B) deposit scheme could yield a notional profit of around Rs 5 trillion for Indian banks over five years, potentially adding Rs 50,000 crore to the Reserve Bank of India's balance sheet. The USD 127 billion amassed through the scheme could facilitate extra bank credit and generate interest income that surpasses the interest paid on deposits. The report asserts the Rs 5 trillion loss estimate is erroneous, as it double-counts the same foreign exchange exposure cost.
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