Strong response to the facility prompted the RBI to close the scheme ahead of schedule; it was originally scheduled to remain available until September 30, 2026
New Delhi: Private sector lender ICICI Bank has raised a total of $17.88 billion through Foreign Currency Non-Resident (Bank) or FCNR(B) deposits as of August 31, 2026.
The facility was introduced by the Reserve Bank of India (RBI) in June as part of efforts to strengthen India’s external sector and improve foreign exchange availability amid continued uncertainty in global financial markets.
India Receives $65.4 Billion Under FCNR(B) Deposits
According to data from the Ministry of Finance, India had received $65.40 billion under the FCNR(B) deposit facility as of August 21, 2026.
The facility received a strong response from banks and depositors, prompting the RBI to discontinue it ahead of the originally announced deadline. The facility had initially been scheduled to remain available until September 30, 2026.
ICICI Bank Raises $17.88 Billion
In a regulatory filing to the stock exchanges on Wednesday, ICICI Bank said it had raised $17.88 billion under the RBI’s swap facility for FCNR(B) deposits as of August 31, 2026.
The bank said its international branches and subsidiaries have extended $9 billion in loans based on these deposits.
In addition, ICICI Bank has issued letters of credit worth $3.63 billion to other banks in connection with loans extended against these deposits.
The figures underline the significant role played by the FCNR(B) facility in mobilising foreign currency resources through the banking system.
What Is the FCNR(B) Scheme?
The FCNR(B) scheme allows banks to mobilise foreign currency deposits by offering attractive interest rates to eligible non-resident depositors.
FCNR(B) deposits are term deposits maintained in foreign currencies. Unlike conventional rupee-denominated deposits, both the principal and interest are repaid in the same foreign currency in which the deposit was originally maintained.
The facility also helps protect depositors from fluctuations in the rupee’s value against the foreign currency in which their deposits are held.
Why Was the Facility Introduced?
The RBI introduced the special facility amid heightened uncertainty in global markets and the need to strengthen India’s foreign exchange position.
By enabling banks to raise additional foreign currency resources, the mechanism was aimed at improving foreign exchange liquidity and supporting the country’s external-sector resilience.
The strong response, reflected in the substantial amount mobilised under the facility, led the central bank to end the arrangement before its original September 30 deadline.
