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Up To 80% Of $127 Billion FCNR(B) Deposits Came From NRI Leverage: Report
NDTV Profit 2 hrs ago·6 Sept 2026, 2:53 pm
A recent report highlights that up to 80% of Foreign Currency Non-Resident (Bank) (FCNR(B)) deposits, worth $127 billion, originated from leverage taken outside the US. This suggests that a significant portion of these funds was borrowed from non-US markets rather than being directly invested from overseas savings. The report indicates that a large share of these deposits was used to fund domestic investments, rather than being held as cash reserves.
This trend is significant for investors as it signals a shift in how foreign capital is being utilized in the domestic market. It implies that a large volume of foreign inflows is driven by borrowing rather than direct savings, which can introduce volatility. Investors should monitor how this leverage affects the stability of foreign exchange reserves and the overall health of the capital account.
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