{
  "id": 8382311,
  "title": "Banks May Reap ₹5 Lakh Crore Notional Profit From India’s Dollar Deposit Scheme: Report",
  "url": "https://urgent.news/2026/09/19/banks-may-reap-5-lakh-crore-notional-profit-from-indias-dollar",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-19T04:17:37.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/banks-may-reap-5-lakh-crore-notional-profit-from-indias-dollar-deposit-scheme-report"
  },
  "original_language": "en",
  "account": "India's FCNR(B) dollar deposit scheme could generate a notional profit of ₹5 lakh crore for banks over a five-year period, according to an SBI Research report. The scheme attracted $127 billion within three months. The Reserve Bank of India might earn an additional ₹50,000 crore by deploying the dollar inflows overseas. The report states that the scheme's cost must be compared to higher borrowing rates in both global and domestic markets. FCNR(B) deposits with interest rates of 6% to 6.5% are competitive when compared to AAA-rated companies' dollar borrowing costs of 7.5% to 8%. The inflows can also lessen banks' reliance on expensive bulk deposits, which make up nearly 38% of local market borrowing, potentially alleviating pressure on wholesale deposit and certificate of deposit rates. SBI Research rejects claims of a ₹5 lakh crore loss, citing that currency depreciation should not be counted separately once liabilities are hedged. The report also dismisses concerns about unmanageable liquidity, attributing it to factors like festive demand, sanctioned loans, credit disbursals, advance-tax payments, and GST outflows. SBI Research estimates that investing $100 billion overseas at a 4% yield for five years could yield $20 billion for the RBI, resulting in a net gain of about ₹50,000 crore after hedging expenses.",
  "summary": "New Delhi: India’s FCNR(B) dollar deposit scheme could deliver a notional profit of ₹5 lakh crore to banks over five years, according to an SBI Research report. The scheme mobilised $127 billion in less than three months. SBI Research estimated that the Reserve Bank of India could earn another ₹50,000 crore from deploying the dollar inflows overseas. Dollar Deposits Offer Competitive Funding The…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}