Economic Times6/10/2026Business1 min readIndia
Indian Banks Update FCNR(B) Rates After Govt Hedging Cost Cover
Quick Look
- Indian banks have revised FCNR(B) deposit interest rates following a government decision to cover hedging costs for 3-5 year deposits, benefiting Non-Resident Indians.
- Central Bank of India offers 6% on these deposits.
AI-generated summary
Why It Matters
Several Indian banks have updated their Foreign Currency Non-Resident Bank (FCNR(B)) interest rates. This action follows the government's announcement to cover hedging costs for new 3 to 5 year FCNR(B) deposits.
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Several Indian banks have updated their Foreign Currency Non-Resident Bank FCNR(B) interest rates.
This comes after the government announced it would cover hedging costs for new 3 to 5 year FCNR(B) deposits.
This initiative benefits Non-Resident Indians and others.
Central Bank of India is offering a 6% interest rate on these deposits.
Open Questions
- What are the specific new interest rates offered by other banks?
- What is the total amount the government expects to spend on hedging costs?
- What is the expected impact on foreign exchange reserves?
- Are there any limitations on the amount of deposits eligible for this scheme?
Related Topics
OrganizationsCentral Bank of India
PlacesIndia
This article was originally published by Economic Times.
