Banks mobilise $17.4 billion via special FCNR window
Banks mobilised foreign-currency liabilities through a special FCNR(B) window to strengthen deposit resources.
- FCNR(B) deposits are accepted from eligible non-resident depositors in foreign currency and help banks build foreign-currency liabilities.
- Banks used a special FCNR window to improve their deposit base when domestic funding markets were under pressure.
What happened
Banks mobilised a large volume of foreign-currency deposits through a special Foreign Currency Non-Resident (Bank) window. The window was designed to attract deposits from non-resident Indians and help banks strengthen their foreign-currency liabilities.
The reported mobilisation of $17.4 billion matters because it shows how banks can use designated deposit products to support funding needs when domestic market conditions are strained.
UPSC may ask how Foreign Currency Non-Resident (Bank) deposits help banks diversify liabilities, manage liquidity stress, and support foreign-exchange-linked balance-sheet needs when domestic funding markets are under pressure.
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