Private banks raised $10.73 billion in FCNR(B) deposits under the RBI's dollar-rupee swap window, beating PSBs' $8.84 billion. HSBC led all lenders with $6.14 billion.
Private sector banks collected more foreign-currency deposits than their public sector peers during the Reserve Bank of India's limited-period dollar-rupee swap window, data tabled in the Lok Sabha showed. The scheme, which ran from June 5 to July 30, 2026, drew $10.73 billion through 20 private banks, against $8.84 billion from 12 state-owned lenders.
ICICI Bank led the private group with $3.69 billion, followed by Kotak Mahindra Bank at $1.65 billion, Axis Bank at $1.58 billion and HDFC Bank at $1.40 billion. YES Bank and RBL Bank added $810.39 million and $556.68 million respectively. Among the public sector banks, only State Bank of India and Bank of Baroda crossed the $1 billion mark, with SBI mobilising $4.12 billion and BoB $1.04 billion. Punjab National Bank, Canara Bank and Indian Bank each raised between $835 million and $970 million.
HSBC was the largest single mobiliser across all 42 participating banks, attracting $6.14 billion. Standard Chartered Bank was the only other foreign lender to pass $1 billion, collecting $1.85 billion. Together, the foreign banks raised nearly as much as all PSBs combined.
The stronger showing of select private and foreign banks reflects their ability to offer higher leverage and superior overall returns to depositors, industry experts said. Those returns are calculated as the interest earned on deposits after adjusting for the cost of leverage. Large private banks have also stepped up their efforts: HDFC Bank and ICICI Bank raised FCNR(B) deposit rates by 25 basis points to 6.25 per cent.
Minister of State for Finance Pankaj Chaudhary told the Lok Sabha the facility is aimed at attracting stable foreign currency inflows, strengthening India's balance of payments and easing pressure on the rupee. Fresh FCNR(B) deposits will be swapped with the RBI, boosting foreign exchange reserves and banking system liquidity in the first leg of the transaction, with the process reversed upon maturity. The eventual increase in reserves and liquidity will depend on the total foreign currency mobilised during the scheme period, he said.
For traders tracking the rupee's path, the deposit mobilisation matters because the swap window was designed to absorb dollar inflows without draining reserves. The FCNR(B) deposits carry maturities of 3-5 years, so the liquidity boost is not a short-term fix. The scheme's success, measured by the $26.5 billion-plus total mobilised, gives the RBI a larger cushion against depreciation pressure through the maturity window.
The data also shows concentration: the top six private banks accounted for the bulk of inflows, and the top five PSBs raised more than $500 million each. That skew suggests depositors favoured lenders with stronger balance sheets and higher rates, a pattern that could persist if the RBI extends or repeats the facility.
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