Indian banks face surge in FCNR(B) deposits to $90-$100bn
Business
Indian banks are seeing a huge rush of foreign currency nonresident (bank) deposits, with inflows expected to hit $90 billion to $100 billion, much higher than earlier predictions.
This surge is driven by strong fundraising by banks and demand for the scheme among overseas investors, outpacing even RBI governor Sanjay Malhotra's estimate.
Banks add $16bn, total $73bn
Between August 13 and 21 alone, banks pulled in $16 billion through these schemes, bringing the total up to $73 billion.
Even with all this cash coming in, the rupee hasn't strengthened much because oil prices remain high.
Experts say the RBI may need around $88 billion for swap facilities to handle repayments if momentum keeps up.