India's RBI secures record $127 billion in foreign-currency deposits

The Reserve Bank of India announced that its Foreign Currency Non-Resident (Bank) deposit scheme gathered $127.226 billion in fixed-term foreign-currency deposits as of August 31, setting a new record. Because the target was met early, the RBI ended the FCNR(B) window on August 31 instead of the planned September 30. When combined with overseas foreign-currency borrowings and external commercial borrowings, total inflows under the initiative amounted to $136.377 billion.

ICICI Bank disclosed it had attracted $17.88 billion in such deposits, using the funds to extend $9 billion in loans and issue $3.63 billion in standby letters of credit. The programme, which also covered hedging costs for banks, aims to strengthen India’s external-sector position and improve forex market liquidity amid global uncertainty. The influx adds to the RBI’s foreign-currency assets and supports the country's record-high foreign-exchange reserves.