'Zero risk' 16% returns in dollars? Why experts say NRIs should read the fine print first
Last Update Date: 05-10-2026
Published by Business Today
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that the structure is a leveraged dollar carry trade, not a conventional fixed deposit, and pointed out that costs, rising loan rates, early exit charges and foreign tax rules can reduce what investors actually earn.
More of Abhishek's views on money management
The article examines a leveraged FCNR(B) deposit structure marketed to NRIs as carrying no risk while projecting returns of about 16% in US dollars. It explains how the deposit-loan spread works, and the interest-rate, liquidity, tax, policy and single-bank exposure risks behind the headline figure.
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'Zero risk' 16% returns in dollars? Why experts say NRIs should read the fine print first