Indian banks receive $127 billion from overseas Indians via scheme
Indian banks just got a major $127 billion cash injection from Indians living abroad, thanks to a special deposit scheme.
Collected between June and August 2026, this money now makes up about 4.5% of the banking system's deposit base as of March 31, 2026, and has helped ease funding pressure after years of loan growth outpacing savings.
S&P sees $190-$220 billion balance-sheet rise
These deposits came in because the Reserve Bank of India offered attractive interest rates by covering extra currency costs.
With most of these funds locked in for 3 to 5 years, banks get more stability and fewer mismatches between what they owe and what they lend.
S&P Global Ratings said the banks' balance sheets could increase by about $190-$220 billion overall, assuming 50-75 of the deposits are leveraged through loans against pledged FCNR(B) deposits, easing funding conditions, boosting liquidity, and improving funding stability.