FCNR(B)

Inflows through RBI's concessional forex swap window topped $143.5 billion by September 18, with FCNR(B) deposits accounting for the bulk at nearly $133 billion.

S&P Global Ratings on Monday said the USD 127 billion mobilised by Indian banks through a special deposit scheme to attract US dollars is a "shot in the arm" for Indian banks as it has eased the tough funding conditions and boosted liquidity. Indian banks raised a record USD 127 billion in deposits through foreign currency non-resident bank (FCNRB) accounts between June 8 and August 31, 2026. S&P said the amount is equivalent to about 4.5 per cent of the banking system's deposit base as of March 31, 2026. "India's banks have received a shot in the arm. Favourable rates mobilised the country's diaspora to channel large deposits back home. We see this as broadly positive. "The momentum has eased the tough funding conditions, in which credit growth has exceeded deposit growth for the past four years," it added. To attract foreign capital, the Reserve Bank of India (RBI) between early June and August absorbed the full hedging cost for the principal on these 3-5 year tenor ...

Indian Bank aims to enter the insurance and asset management spaces through joint ventures within 1.5 to 2 years, while launching wealth management services in H2

SBI Research estimates $127 billion in FCNR(B) deposits could support ₹25 trillion of additional bank credit and generate ₹5 trillion in notional profit over five years

Our currency policy is costly for people and generates small benefits for a subset

Rise due to hedging costs on interest, not absorbed by RBI

The state-owned lenders are using cheaper foreign-currency funding to meet rupee liquidity needs, extend loans and reduce dependence on high-cost deposits and borrowings

RBI Governor Sanjay Malhotra says nearly half of the $127.2 billion in FCNR(B) deposits mobilised under the concessional swap facility have a five-year tenure

The comments come as the RBI deals with the fallout from record foreign-exchange inflows

CS Setty said banks would deploy the liquidity gradually, while also calling for lower upfront costs to enable large-scale adoption of agentic AI in Indian banking

India must now choose among currency appreciation, inflation, bank losses, indirect public exposure and an expensive sterilisation programme

The state-run lender mobilised $8 billion through the RBI's concessional swap window, exceeding its initial target of $4-5 billion, amid strong demand for FCNR(B) deposits

Axis Bank MD & CEO Amitabh Chaudhry cautioned banks over deploying excess liquidity, while flagging the possibility of an interest rate hike in the near future

Today's opinions examine India's critical-minerals strategy, FSSAI's food-warning labels, Budget discipline, the RBI's dollar-rupee swaps and lessons from industrial policy

The dollar-rupee forex swap was necessary and successful. Now, it is time to weigh the pros and cons of making capital inflows more attractive

The private lender may issue foreign-currency bonds, notes or other permitted debt securities through one or more transactions, depending on market conditions

Robust FCNR(B) inflows are reducing banks' reliance on higher-cost certificates of deposit, while supporting credit expansion and improving liquidity coverage ratios

The move, announced on August 14, aims to cap dollar inflows that have already outpaced the $26 billion raised in 2013, when then RBI Governor Raghuram Rajan launched a similar swap scheme

Liquidity surplus at record high of ₹9.7 trn; call rate drops below 5%

RBI data showed banks mobilised $127.2 billion through FCNR(B) deposits, while analysts expect the inflows to support liquidity, credit growth and lower rates