MUMBAI: RBI has said $20.7 billion has been raised through its concessional swap facility for FCNR(B) deposits, OFCBs and ECBs till July 17, reflecting investor interest after the scheme was announced on June 5 and operationalised from June 8 to boost the balance of payments and attract capital inflows. The collection is almost twice the amount speculated to have been raised. By the end of the swap window, bankers expect mobilisation of about $80 to $85 billion.Of the total mop up, $17.4 billion came from FCNR(B) deposits, $2 billion from OFCBs and $1.3 billion from ECBs. The window will remain open till Sept 30 for FCNR(B) deposits and Dec 31 for OFCB and ECB flows. RBI’s out of turn disclosure that about $20 billion has already been raised under the FCNR(B) mop up is seen as a market management and credibility move. The disclosure comes after the rupee came under pressure and inched toward its record low on Monday.On July 18, senior private bank CEOs said FCNR(B) inflows were likely to be below original estimates because of NRI tax treatment, liquidity and regulatory constraints in key markets such as UAE, and operational curbs on Indian banks’ representative offices in the Gulf.RBI did not divulge the names of the banks or the jurisdictions from where the deposits have been raised. Bankers said that large sums could have come only through leverage, and that leverage was most likely from tax free jurisdictions such as UAE.Except for RBL Bank, which raised $150 million, none of the private banks have disclosed their collections under the FCNR(B) scheme. Indian Bank MD & CEO Binod Kumar said the bank is targeting about $2 billion in FCNR(B) deposits by end Sept 2026, and that it already has a pipeline of nearly $1 billion to support that goal. However, the actual deposits until last week was $150 million. SBI is understood to be offering leverage to depositors through its GIFT City IBU.Central Bank of India MD & CEO Kalyan Kumar said the bank has mobilised about $8.4 million under the special FCNR(B) window so far and is targeting around $400 million by end Sept 2026. He said that the bank would provide leverage to depositors through its international banking unit at GIFT City.Union Bank of India MD & CEO Asheesh Pandey said the bank has already mobilised around $106 million under the FCNR(B) scheme, and is targeting $1.5-2 billion by Sept 2026 under the special RBI window. He said FCNR(B) is being used to replace wholesale deposits over time and support CASA growth, adding that flows should pick up as awareness improves and customers get more comfortable with rate stability.
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