Archive · 2 Sep 2026
Banks Mobilise Record $127.226 Billion Through FCNR(B) Deposit Drive
Banks in India received a very large amount of money from people living outside the country.
They put this money into special foreign-currency accounts called FCNR(B) deposits.
The banks collected $127.226 billion in 85 days.
More than half of that amount arrived during the final 10 days.
Banks offered unusually high interest rates of 6-7.5% to attract depositors.
These deposits also received special regulatory advantages.
Some banks offered to lend or provide leverage worth up to 19 times the deposit for very large deposits.
Including other types of foreign-currency borrowing, the total raised was $136.377 billion.
An economist said the result was higher than the expected $80-100 billion.
Banks raised $127.226 billion in fresh FCNR(B) deposits during the Reserve Bank of India’s 85-day concessional swap facility.
The facility was open from June 8 to August 31, with $65.397 billion mobilised through August 21 and $61.829 billion in the final 10 days.
Banks offered 6-7.5% interest on new three-to-five-year deposits, about 300-450 basis points above prevailing rates.
The deposits were exempt from Cash Reserve Ratio and Statutory Liquidity Ratio requirements, while some banks offered leverage of up to 19 times for deposits of $1 million or more.
Total funds mobilised under the special USD-INR swap facility reached $136.377 billion, including other foreign-currency borrowings.
- Who
- Indian banks, non-resident depositors, the Reserve Bank of India, and economist Madan Sabnavis of Bank of Baroda.
- What
- Banks mobilised $127.226 billion in fresh FCNR(B) deposits under a concessional USD-INR swap facility.
- When
- The facility operated for 85 days, from June 8 through August 31.
- Where
- The deposits were raised by banks in India under a USD-INR foreign-exchange swap arrangement.
- Why
- Attractive 6-7.5% interest rates, exemptions from CRR and SLR requirements, and leverage incentives helped attract deposits.
- Fresh FCNR(B) deposits
- $127.226 billion
- Facility period
- June 8 to August 31, for 85 days
- Funds raised through August 21
- $65.397 billion
- Funds raised in final 10 days
- $61.829 billion
- Deposit interest rates
- 6-7.5% for new three-to-five-year deposits
- Leverage offered
- Up to 19 times the deposit for deposits of $1 million or more
- Total under special swap facility
- $136.377 billion, including FCNR(B) deposits, external commercial borrowings, and overseas foreign-currency borrowings