FCNR(B) Deposit Costs Are Rising for Indian Banks

Hold onto your hats, folks! Indian banks are about to feel the pinch as FCNR(B) deposit costs are set to rise by 15-20 basis points. While the RBI is covering some costs, banks will still have to foot the bill for dollar interest payments. So, if you see a 6.5% deposit, it might actually cost them around 6.65-6.70%. Talk about a balancing act!