Mumbai, Sep 30 (PTI) Bank credit against fixed deposits, including FCNR(B) and NRNR deposits, rose 43.2 per cent year-on-year to Rs 2.04 lakh crore as of August 31, 2026, according to the RBI data.
Such advances stood at Rs 1.43 lakh crore a year earlier. On a financial-year basis, advances increased 20.8 per cent from Rs 1.69 lakh crore as of March 31, 2026.
The sharp rise in advances against fixed deposits came even as overall bank credit expanded 19.1 per cent year-on-year to Rs 223.88 lakh crore as of August 31, from Rs 188.01 lakh crore a year earlier.
Advances against fixed deposits include loans provided by banks against deposits held by customers, allowing depositors to raise funds without prematurely breaking their fixed deposits.
As of
August 31, banks have mobilised USD 133 billion through the special Foreign Currency Non-Resident (FCNR-B) deposit scheme.
The RBI’s special USD-INR forex swap facility for FCNR (B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECBs) was launched on June 8, 2026.
The scheme was open till August 31 for FCNR(B) deposits, and will be open until December 31, 2026 for ECBs and OFCBs.
According to the data reported by authorised dealer banks till September 18 on FCNR(B), ECBs and OFCBs, the total inflows stood at USD 143.596 billion.
FCNR(B) deposits accounted for USD 132.980 billion, OFCBs contributed USD 5.320 billion, and ECBs amounted to USD 5.296 billion, taking total inflows to USD 143.596 billion, the RBI data showed.
FCNR(B) deposits are fixed-term deposits held in foreign currencies, with the principal and interest repaid in the same currency, shielding depositors from direct rupee exchange-rate risk. The arrangement allows non-resident Indians to place foreign-currency funds with Indian banks without taking direct rupee-currency risk.
Further, the RBI data showed that bank credit to industry grew 18.2 per cent in August, up from 7 per cent in the same period last year.
On a year-on-year (y-o-y) basis, non-food bank credit grew 18.8 per cent as on the fortnight ended August 31, 2026, compared to 10.2 per cent during the corresponding fortnight of the previous year (September 5, 2025). PTI MSU AA MR
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