INDIANB

attracts $140 million in fresh FCNR(B) deposits after RBI's new scheme; targets $2 billion by September

has mobilised nearly $140 million in fresh FCNR(B) deposits since the Reserve Bank of India's special forex swap window became operational in June. The lender is targeting to garner $2 billion in such deposits by September, backed by a robust pipeline. "We aim to mobilise around $2 billion in FCNR(B) deposits by September. While the target may appear ambitious, we already have a visible pipeline of nearly $1 billion," said Binod Kumar, Managing Director and CEO of Indian Bank, following the bank's quarterly earnings announcement. The bank is currently offering an interest rate of 6% on FCNR(B) deposits. As of March 2026, Indian Bank's outstanding FCNR(B) deposit base stood at around $457 million. Compared with that, the latest inflow of $140 million marks a strong pickup. Kumar noted that a similar surge was last witnessed in 2013, when a comparable scheme was introduced. The RBI launched the special forex swap window to encourage foreign currency inflows and strengthen the country's forex reserves. The facility became effective in early June and will remain available until September 30, 2026, for FCNR(B) deposits with maturities of three to five years. Under the revised framework, banks are permitted to offer higher interest rates of up to 7.1% by removing earlier interest rate caps. In addition, eligible FCNR(B) deposits are exempt from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements, making the scheme more attractive for both banks and depositors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.