Foreign, private banks raise over 68% FCNR(B) funds
Foreign and private banks have dominated the mobilization of $28 billion in FCNR(B) deposits, leveraging RBI's reserve requirement waivers and forex swap windows. HSBC, SBI, and ICICI Bank emerged as the top performers, collectively accounting for nearly half of the total inflows during the June-July period.
Why it matters
The high concentration of capital mobilization highlights how specific banking strategies and regulatory incentives can significantly impact national foreign exchange reserves and liquidity management.
MUMBAI: Of the $28 billion addition to FCNR(B) deposits between June 5 and July 30, the top three banks, HSBC, SBI and ICICI Bank, accounted for nearly half the collections, with HSBC alone contributing about 23%, according to data released by govt in a Parliament response dated August 3, 2026.FCNR(B) deposits rose sharply to $60.6 billion as on July 30 from $32.6 billion on June 5, implying a net inflow of $28 billion mobilised under RBI’s forex swap window. The surge reflects aggressive mobilisation by banks, taking advantage of RBI’s reserve requirements waiver on these deposits and rupee dollar swap which covered their foreign exchange risks. Foreign banks recorded the fastest proportional growth, with outstanding deposits jumping from $603 million to nearly $9 billion, accounting for about 29.9% of total inflows.
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