GENERAL11 Sept 2026
BoI, Indian Bank cumulatively raise nearly $5 bn through FCNR deposits
Bank of India and Indian Bank have together raised close to $5 billion through FCNR(B) deposits. FCNR(B) means foreign currency non-resident deposits. Both state-run banks used the RBI's concessional swap facility, which lets them borrow foreign currency cheaply. This cheaper money helps them meet rupee liquidity needs, give out more loans, and rely less on costly deposits and borrowings.
Key Statutory Highlights
- Bank of India mobilised nearly $2.4 billion through FCNR(B) deposits under the RBI's concessional swap facility.
- Indian Bank raised $2.3 billion the same way, taking the two banks' combined total to close to $5 billion.
- Both state-owned lenders are using this cheaper foreign-currency funding to meet rupee liquidity needs, extend loans and cut dependence on high-cost deposits and borrowings.
Actionable Advice for Taxpayers / Founders:If your business depends on bank funding, it may be worth asking your banker or CA whether this cheaper foreign-currency money is easing loan availability or pricing for you. Treat any change as a possibility, not a certainty, and plan your borrowing accordingly.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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