FCNR(B) scheme could yield Rs 5.5 trillion notional profit for banks, RBI: SBI Research

SBI Research indicates FCNR(B) deposits may yield substantial profits for banks and the RBI. The report refutes earlier estimates of significant financial losses from the scheme. Mobilized funds could support additional bank credit and generate considerable interest income. Hedging costs are considered manageable, and the RBI could see added profitability. This scheme's liquidity will support credit demand amid outflows and...