Now Reading: FCNR(B) inflows likely to hit USD 100 billion, Jefferies says
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FCNR(B) inflows likely to hit USD 100 billion, Jefferies says
Indian banks are on track to mobilise USD 90-100 billion through FCNR(B) deposits and other foreign currency borrowings by August 31, according to a Jefferies report. Banks have already raised USD 73…
Indian banks are on track to mobilise USD 90-100 billion through FCNR(B) deposits and other foreign currency borrowings by August 31, according to a Jefferies report. Banks have already raised USD 73 billion between June 8 and August 21, exceeding expectations, with USD 16 billion coming in the last eight days alone. The Economic Times reports that 76 per cent of the mobilisation is fresh money, not rollovers, and that foreign banks' share of FCNR(B) deposits jumped from 2 per cent to 15 per cent.
The Reserve Bank of India advanced the closure of the concessional swap window to August 31 from September 30 after the strong response. Rediff, citing a finance ministry statement, says the scheme started on June 8 to attract foreign capital and stem the falling rupee. The current inflows could be nearly three times the USD 34 billion mobilised under a similar RBI window in 2013. The government said the large-scale mobilisation will strengthen India's external buffers and reflects NRI confidence in the economy.
Indian Opinion Analysis
The Economic Times frames the story through Jefferies' data, highlighting the share of fresh money, bank-level winners, and interest rate competition. Rediff, via a PTI feed and a finance ministry statement, frames it as a success story for the government and the RBI: the scheme achieved its objective ahead of schedule and demonstrates NRI confidence. The critical difference is attribution: ET relies on a brokerage report, while Rediff foregrounds official government commentary. Both report the same figures, but ET's framing is market-driven and granular, while Rediff's is official and celebratory. Neither source challenges the scheme's effectiveness. The RBI's August 31 closure date is the next concrete event.
Coverage: 2 sources, 1 pro-government, 1 neutral
Sources (2): bfsi.economictimes.indiatimes.com (neutral report), money.rediff.com (pro government)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
