New Delhi, Aug 15 (IANS) A whopping $52.3 billion has been mobilised under the Foreign Currency Non-Resident (Bank), or FCNR(B) deposits which is remarkable and even after one month truncation, $65–70 billion worth FCNR(B) mobilisation is expected by the end of the scheme on September 30, an SBI Research report said on Saturday.
Including OFCBs and ECBs, the total dollar mobilisation could reach $80–85 billion, the report noted.
The Reserve Bank of India (RBI), after witnessing an encouraging response and the resultant forex inflows, has announced to prematurely end its swap facility for FCNR(B) deposits. The swap facility will now be available only for FCNR(B) deposits mobilised till August 31, 2026, the RBI said.
The swap facility has seen avid interest and attracted steady forex inflows since June 8, 2026, the RBI said in a statement.
According to the SBI report, the RBI has already recouped around $31 billion of Foreign Currency Assets as of August 7, equivalent to nearly 55 per cent of the amount mobilised.
While the first $20 billion was mobilised (overall) in 38 days, the next $20 billion took only 14 days.
In the past 13 days (August 1-13), $16 bn has been mobilised, making it a total of $56.8 billion.
Meanwhile, the surge in bank deposits and foreign-currency funding should lower the counterfactual level of G-Sec yields through deposit-to-yield transmission gaining credence, said the report.
The clearest beneficiary should be the 3–7-year segment due to maturity matching, carry, and lower supply pressure followed by the 7–10-year segment, it added.
Meanwhile, India’s foreign exchange reserves rose sharply by $14.136 billion during the week ended August 7, crossing the $707 billion mark, driven by a significant increase in foreign currency assets and gold reserves.
The rise was led by an increase in foreign currency assets (FCAs), which constituted the largest share of the country’s forex reserves. FCAs climbed by $9.946 billion to $574.625 billion during the week.
–IANS
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