Banks add $13.10 bn to FCNR(B) deposits collection box in just 8 days; total mobilisation under RBI’s three concessional swap facilities stand at $72.85 bn until 21 August.
Monetary policy committee members to back repo rate hike if inflationary pressures persist and oil prices continue to climb, minutes of meeting showed.
RBI advances by a month the closure of its special FCNR(B) deposit swap facility after inflows cross over $50 bn; announcement comes days after RBI Governor Sanjay Malhotra says no proposal to prematuredly end the special scheme.
Early closure of FCNR(B) deposits swap window and oil prices rising close to $90 per barrel sends rupee diving to low of 95.61 a dollar; sharper fall arrested by RBI’s market interventions.
After mopping up $6bn, SBI expects to add $4bn in final two months of RBI’s swap window. Is demand for FCNR(B) deposits slowing amid over-dependence on ME and tax issues in other states? SBI Chairman Setty says flows are more spread out, unlike in 2013.
SBI Chairman admits it is too late to catch up with entrenched players like PhonePe and Google Pay who dominate UPI market; YONO Pay is trying to get at least its own customers to use the platform.
Repo rate remains unchanged at 5.25% for 4th consecutive time; inflation forecast lowered to 5% for FY27 and GDP growth increased to 6.7%.
Banks’ combined stock of FCNR(B) deposit outstanding stands at $60.55 bn as on 30 July, up from $32.56 bn on 5 June 2026; SBI, HSBC and ICICI Bank lead the ship.
Private banks collected Rs 4,948.71 crore in FY26 from customers for failing to maintain minimum balance in their savings and current accounts; HDFC and Axis Bank accounted for 58% of this.
Total foreign exchange inflows stand at $40.82 bn under RBI’s three concessional swap facilities, up from $20.72 bn till 17 July; $2.58 bn is via OFCBs and $1.52 bn through ECBs.
Post HDFC Bank rate row, RBI allows differential bulk deposit rates based on their run-off risk profile; lenders, however, have to offer uniform interest rates on deposits of similar amount.
RBI Governor Sanjay Malhotra says bulk of inflows is through FCNR(B) deposits; dismisses concerns that inflows represent recycling of existing deposits.
Sanjay Malhotra and the MPC members may find small space for an interest rate pause this time but a credit cycle reversal is inevitable down the line.
SBI delivers mixed performance in Q4 with loan growth strong but margins seeing contraction; Chairman CS Setty sticks to FY27 guidance on loan growth and domestic NIM.