New Delhi, June 15 -- Fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits mobilised under the Reserve Bank of India's latest concessional swap facility are expected to provide a modest boost to banks' net interest margins (NIMs) while significantly easing funding pressures in the banking system, according to a report by Systematix Research.

The report noted that banks have responded to the RBI's June 2026 measures by increasing FCNR(B) deposit rates, with most lenders now offering between 5.25 per cent and 7.1 per cent on such deposits.

Highlighting the margin advantage of these deposits, the report said, "Our calculations show a 60 bps higher NIM on FCNR(B) deposits." The benefit stems from the RBI's decision to exempt fresh ...