India's bank deposits surge to record $3 trillion after RBI dollar swap scheme
India's banking system reached a record ₹284 trillion in deposits, helped by a discounted dollar swap window that drew about $133 billion.
The Reserve Bank of India reported that total deposits in the country's banking system climbed to about ₹284 trillion, or $2.99 trillion, by the end of September, marking a new high. Deposits grew by ₹21.67 trillion in the first half of the fiscal year, with the bulk of the increase occurring between June and August when the central bank operated a discounted dollar-swap window. That scheme attracted roughly $133 billion in foreign-currency inflows before it was closed a month early on August 31.
Additional deposits of ₹7.73 trillion arrived in the fortnight ending September 30 as banks built funding buffers before the quarter closed. Overall, deposits were up 8.4% from March-end, while competition for funds remained limited. CareEdge Ratings warned that the October rate hike could push term-deposit rates higher, as banks need to fund credit expansion faster than deposit growth while the liquidity surplus narrows.
Why it matters
The surge shows how policy tools can quickly boost funding, affecting credit availability and interest-rate dynamics in India's economy.
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