HSBC, State Bank of India and ICICI Bank have accounted for half of net FCNR(B) deposits after the Reserve Bank of India (RBI) introduced a special forex swap facility to attract dollars and defend the rupee.

The trio have net foreign currency non-resident (Bank), or FCNR(B), deposits of $14 billion against $28 billion collected by all banks during the period between 5 June and 30 July, government data showed.  

It would be wrong to conclude that this is the amount of fresh FCNR(B) deposit inflows that have flown into banks under the RBI’s special forex swap facility. The data, tabled in the Parliament, provides FCNR(B) outstanding figures during this period. There would be withdrawals and repatriations, which have not been specified.    

According to the data provided by Minister of State for Finance Pankaj Chaudhary in the Parliament on Monday, the combined stock of FCNR(B) deposit outstanding stood at $60.55 billion as on 30 July, up from $32.56 billion on 5 June 2026. This sharp rise is due to the RBI’s special swap scheme and the net difference amounts to nearly $28 billion.

According to the RBI, the scheme had attracted total inflows of $36.73 billion until 31 July. The over $8 billion gap is due to factors like withdrawals and rebooking under the scheme.

The RBI’s similar measures in 2013 following the US Federal Reserve’s taper tantrum had resulted in a mop-up of $26 billion.

HSBC’s outstanding FCNR deposits rose $6.14 billion, the highest among lenders, followed by State Bank of India’s $4.12 billion between 5 June and 30 July. ICICI’s outstanding increased by $3.7 billion, while Axis Bank raised about $1.6 billion, Kotak Mahindra Bank $1.7 billion and HDFC Bank $1.4 billion. Foreign lender Standard Chartered Bank raised $1.9 billion and Bank of Baroda $1 billion.

However, SBI’s outstanding balance was the highest at $13.82 billion as on 30 July, up from $9.70 billion on 5 June. The next in the hierarchy  in terms of outstanding FCNR(B) deposits as on 30 July were HSBC at $6.26 billion (from $120.26 million on 5 June), ICICI Bank $6.06 billion ($2.37 bn), HDFC Bank $5.42 billion ($4.01 bn) and Axis Bank $4.67 billion ($3.08 bn). 

Public sector banks added $8.8 billion in FCNR deposits between 5 June and 30 July, private sector banks $10.7 billion and foreign banks $8.4 billion. Small finance banks netted closed to $50 million and cooperative banks 0.7 million, the data showed.

The RBI introduced the dollar-rupee forex swap facility to “attract stable foreign currency inflows, strengthen India's balance of payments and to ease pressures on the rupee”, Chaudhary told the lower house of the Parliament on Monday.

The RBI has allowed banks to offer to non-resident Indians (NRIs) leveraged deposits, with the central bank bearing the hedging risk. The scheme was announced on 5 June and operationalised three days later, with the swap window open until 30 September.

“The potential cost of providing the swap facility would depend on the quantum of foreign exchange mobilised, the maturity of the swaps and exchange rate as well as the forward premia at the time of the swap,” Chaudhary said.