Indian Banks Receive $127 Billion Boost From Foreign Currency Deposits

Indian banks received a large amount of money from people living outside India.

The money was placed in special foreign-currency accounts called FCNR(B) deposits.

Banks collected $127 billion between June 8 and August 31, 2026.

The Reserve Bank of India helped make these accounts more attractive by covering certain hedging costs.

The deposits usually last for three to five years.

This gives banks steadier funding for a longer period.

Banks have been lending money faster than they have been collecting deposits.

The new funds may reduce that pressure.

If customers borrow against these deposits, the banks’ balance sheets could grow even more.