Banks likely to see 15-20 basis points rise in FCNR(B) deposit costs

Banks are likely to pay more for FCNR(B) deposits, the foreign currency accounts held by non-resident Indians. Deposit costs could rise by 15 to 20 basis points because of hedging costs on interest, and the RBI, the Reserve Bank of India, is not absorbing that extra burden. In practice, banks may adjust rates on linked products, so watch your bank's revised rates before you commit money.