London‑based HSBC has amassed $6.14 billion in FCNR(B) deposits under RBI’s concessional swap window, outpacing State Bank of India’s $4.12 billion. Private banks collectively gathered $10.73 billion, yet the influx has had a modest effect on the rupee’s value.

Key Takeaways

  • HSBC raised $6.14 billion in FCNR(B) deposits, leading the pack.
  • Private banks together attracted $10.73 billion, ahead of public‑sector banks.
  • The inflows have yielded only a 0.5% rise in the rupee.

According to the Finance Ministry’s latest figures, London‑headquartered HSBC has now secured $6.14 billion in FCNR(B) deposits, the highest under the RBI’s concessional swap facility. It is followed by State Bank of India (SBI) with $4.12 billion and ICICI Bank with $3.70 billion.

Non‑resident Indians can leverage up to 19 times their FCNR(B) deposit, meaning a $1 million deposit can unlock $19 million of borrowing that can be redeposited with the same bank. This leverage has enabled NRIs to earn returns of up to 15%, depending on borrowing costs and deposit rates.

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Bank Rankings and Comparison

BankFCNR(B) Deposits (billion $)
HSBC6.14
SBI4.12
ICICI Bank3.70
Kotak Mahindra Bank1.66
Axis Bank1.55
HDFC Bank1.41

Historical Background

The FCNR(B) concessional swap window was announced on June 5 and became operational on June 8, aiming to attract foreign capital and stabilise the rupee after a steep decline in late 2025 caused by US tariffs, limited AI investment exposure, and geopolitical tensions in the Middle East.

Why This Matters

BozokMedia analysis shows that while the surge in FCNR(B) deposits signals strong NRI confidence, the limited impact on the rupee underscores the RBI’s hedging strategies and forward market operations that buffer short‑term volatility.

The rapid rise in leveraged FCNR(B) deposits is a double‑edged sword for India’s foreign‑exchange reserves.
Did You Know?: This is the first time RBI released bank‑wise FCNR(B) deposit data, offering unprecedented transparency to investors.

Frequently Asked Questions

Q1: What is an FCNR(B) deposit and how does leverage work?
A: It is a foreign‑currency, non‑resident bank deposit scheme in India; leverage allows depositors to borrow up to 19 times the deposited amount and re‑invest it with the same bank.

Q2: Why hasn’t the rupee strengthened significantly despite the large inflows?
A: The RBI manages forward dollar sales and hedges interest‑payment risks, which limits the immediate impact of the deposits on the exchange rate.