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What are the risks of borrowing against FCNR deposits?
short by Jessica Rajan / on Tuesday, 28 July, 2026
Leveraged FCNR deposits have gained attention after RBI introduced a concessional swap facility to boost foreign currency inflows. The strategy lets NRIs borrow against FCNR deposits to potentially earn higher returns. However, rising borrowing costs, tax implications, regulatory changes, penalties for premature withdrawal and changes in residential status can reduce or even wipe out the gains.
read more at Moneycontrol