FCNR-B Deposits

IMC’s Tax and Regulatory Pathshala" Podcast Series:

CA Ganesh Rajgopalan in conversation with CA Rutvik Sanghvi, both members of the Direct Taxation Committee of IMC, on the recent move by RBI in June 2026 to allow leveraged FCNR-B Deposits by NRIs and the related legal issues under Indian income-tax and foreign exchange law.

They discuss thread-bare issues related to how the scheme works; what points should NRIs take care before borrowing and depositing; whether NRIs returning to India should invest before they return; deductibility of tax at source from interest; and analysis of borrowings made by NRIs either from overseas banks, OBUs in GIFT City or from foreign branches of Indian banks.