FCNR deposits draw strong inflows
Key Highlights
- ICICI Bank mobilised gross FCNR(B) deposits of USD 17.88 billion.
- The amount was raised up to August 31 under the RBI’s concessional swap facility.
- India attracted USD 65.40 billion in FCNR(B) deposits up to August 21.
- ICICI Bank’s overseas branches and subsidiaries extended USD 9 billion in loans against such deposits.
- The bank issued USD 3.63 billion of standby letters of credit linked to the deposits.
- ICICI Bank also raised USD 3.55 billion through dollar-denominated bonds during July-August.
New Delhi, September 2, 2026: ICICI Bank has mobilised gross Foreign Currency Non-Resident Bank deposits worth USD 17.88 billion under the Reserve Bank of India’s concessional swap facility, highlighting strong foreign currency inflows into India’s banking system.
The private sector lender said the mobilisation was recorded up to August 31, the closing date of the special facility.
The RBI had introduced the facility in June as part of measures aimed at strengthening India’s external sector position and improving foreign exchange liquidity amid uncertainty in global financial markets.
The programme generated a strong response from overseas depositors and banks.
According to finance ministry data, India had attracted USD 65.40 billion through FCNR(B) deposits up to August 21.
The response prompted the Reserve Bank to close the window earlier than originally planned. The facility was initially expected to remain available until September 30, 2026, but was brought forward to August 31.
ICICI Bank said loans extended by its international branches and subsidiaries against deposits mobilised under the scheme amounted to USD 9 billion.
The lender also issued standby letters of credit worth USD 3.63 billion to other banks in relation to loans backed by such deposits.
In addition to the FCNR(B) mobilisation, ICICI Bank raised an aggregate USD 3.55 billion through US dollar-denominated bonds during July and August 2026.
The various funding channels underline the bank’s activity in international capital markets and foreign currency financing during a period of heightened focus on India’s external liquidity position.
FCNR(B) accounts are fixed deposits maintained in foreign currencies by non-resident Indians.
Both the principal amount and interest earned on such deposits are repayable in the same foreign currency, protecting depositors from direct rupee exchange-rate exposure on the deposit amount.
Under the RBI initiative, banks were able to offer attractive interest rates to overseas depositors while accessing a concessional currency swap mechanism.
The facility was designed to encourage foreign currency inflows and strengthen liquidity buffers as global markets faced increased uncertainty.
The large mobilisation by ICICI Bank represents a significant share of the overall deposits attracted under the initiative and reflects strong participation by overseas customers.
The inflows also add to broader efforts by policymakers and financial institutions to strengthen India’s foreign exchange position and improve resilience against external financial shocks.
