The Foreign Currency Non-Resident (Bank) deposits in the Indian banking system have witnessed a huge surge in under 60 days. This comes as the Reserve Bank of India’s concessional swap facility, introduced on June 8, has helped push the FCNR(B) outstanding balance to nearly double between June 5 and July 30, 2026.
The FCNR(B) outstanding balance rose from $32.5 billion (USD 32,558.5 million) to $60.5 billion (USD 60,548.7 million) — an 86% jump in under two months.
Which Banks Are Driving the Dollar Rush?
Some of the banks that are prominent in the recent dollar drive from NRIs include HSBC, SBI, UCO Bank, Punjab National Bank and Standard Chartered.
HSBC is the standout outlier. The bank went from just USD 120.3 million to USD 6,261 million — a 52x surge. With deposits crossing $6 billion, HSBC is the single biggest mover in the entire dataset by a wide margin. The bank’s leverage strategy appears to have paid off, with investors being offered loans of up to 19 times their capital.
Foreign Banks Vs Indian Banks
Overall, the foreign banks’ share in dollar deposits increased significantly, growing nearly 15 times from USD 603 million to USD 8,972 million. In contrast, public sector banks grew their share by 53% and private sector banks by 72%.
Standard Chartered is another star performer. The bank went from zero to USD 1,857.8 million. It had no FCNR(B) deposits at all on June 5 and became one of the top-10 contributors by July 30.
State Bank of India remains the single largest bank, with deposits rising by $13 billion (USD 13,822 million). Its growth rate, however, stood at 43%.
Smaller banks posted the fastest percentage growth among established players. UCO Bank grew nearly 7x and Punjab National Bank more than 3x, though their base amounts were small.
For ICICI Bank, the deposits rose from nearly $2 billion to over $6 billion, while for HDFC Bank, the deposits increased from $4 billion to $5.4 billion during this period.
Not every bank joined the rally. A handful of banks shrank — City Union Bank, J&K Bank, Deutsche Bank, Doha Bank, Emirates NBD, and SBM Bank India all saw outstanding deposits fall, bucking the overall inflow trend.
Where Did This Data Come From?
The data regarding outstanding FCNR(B) deposits was provided by Minister of State for Finance Pankaj Chaudhary in response to a question in the Lok Sabha, with calculations based on figures from June 5 and July 30. The RBI’s Swap Facility was operationalised on June 8, 2026, and will remain available up to September 30, 2026, for FCNR(B) deposits, and up to December 31, 2026, for OFCBs and ECBs.
The difference in the outstanding deposits between June 5 and July 30, 2026, stands at $28 billion ($27,990.2 million), as per the information shared in Parliament.
For the full year in 2024-25 as compared to 2025-26, the total NRI deposits were nearly flat, rising marginally from $164.6 billion to $165.6 billion in 2025-26, an increase of just $1 billion, as per the RBI data.
What Does the RBI’s Own Data Show?
On August 1, the RBI, in its second update, reported that $40.8 billion has been mobilised by July 31, with FCNR(B) deposits contributing around $36.7 billion of the total. Subsequent data releases from the RBI may clear the discrepancy in the data.
The RBI’s most recent set of data on NRI deposits is for May 2026. As per this data, the FCNR outstanding balance was $34 billion at the end of May, up slightly from $33.7 billion at the end of March. By July 31, this number had touched $60.5 billion, as per the data shared by the minister.
Going forward, the RBI’s June-end data is expected to show a significantly higher balance, with consistently higher balances lasting until at least September.
Why Did RBI Launch This Facility?
RBI introduced the Swap Facility to bolster India’s balance of payments and attract capital inflows, and has since announced measures such as concessional swaps for fresh FCNR(B) deposits. On June 8, the RBI started hedging currency depreciation risks for banks involved with FCNR(B) deposits of three to five years. By June 18, the ceiling on interest rates was removed, allowing banks to offer higher rates to NRIs.
Disclaimer: This article is based on official data released by the Reserve Bank of India and is intended for informational purposes only. This article is based on data shared by the Ministry of Finance in the Lok Sabha and RBI’s official updates. Figures are subject to revision by the RBI in subsequent bulletins. It should not be construed as investment, financial, or legal advice. NRIs considering FCNR(B) deposits should evaluate rates, tenor, and hedging terms with their bank before investing. NRIs and investors are advised to consult their bank or a qualified financial advisor before making any decisions regarding FCNR(B) deposits or related instruments.