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[BUSINESS] · India · 32 sources

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RBI moves FCNR(B) deposit deadline amid strong forex inflows

The Reserve Bank of India (RBI) has announced the premature closure of its special forex swap facility for Foreign Currency Non-Resident (Bank) deposits. Due to an encouraging response, the deadline for banks to mobilise FCNR(B) deposits has been moved forward to August 31, 2026. Banks will be permitted to avail the swap facility for these deposits until September 11, 2026. However, the swap facility for External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) will remain available until December 31, 2026.

As of August 13, 2026, total foreign exchange inflows through these channels reached USD 56.85 billion. FCNR(B) deposits were the primary contributor, accounting for USD 52.3 billion. This regulatory move follows significant liquidity support measures aimed at strengthening India’s external sector. Uniqus Consultech reports that such regulatory transformations could potentially unlock nearly $50 billion in capital for the Indian banking sector.

Concurrently, Indian equity markets experienced volatility. The BSE Sensex and NSE Nifty declined in early trade on Friday, influenced by rising crude oil prices and geopolitical tensions in the Middle East, specifically regarding the Strait of Hormuz. The Sensex saw a decline of approximately 300 points during the session.

Entities

Axis Bank · BSE · BSE Sensex · Brent crude · Geojit Investments Limited · India · Iran · NSE · NSE Nifty 50 · Reserve Bank of India · Tata Steel · Uniqus Consultech

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14 days ago
14 days ago