India's foreign-currency deposits surge to $17.4 billion as banks tap overseas capital

India's foreign-currency deposits have climbed to $17.4 billion, according to data from the Reserve Bank of India.

The central bank also reported that companies have raised an additional $1.34 billion through external commercial borrowings, highlighting a broad-based inflow of overseas capital into the Indian financial system.

5 billion in foreign-currency deposits under the new scheme, while Indian Bank has secured $140 million in fresh Foreign Currency Non-Resident (B) deposits since the RBI opened its new swap window in June.

The surge in deposits follows the launch of a special facility for overseas citizens last month, which has seen rapid adoption by major lenders.

State Bank of India alone has attracted more than $1.5 billion in foreign-currency deposits under the new scheme, while Indian Bank has secured $140 million in fresh Foreign Currency Non-Resident (B) deposits since the RBI opened its new swap window in June.

This influx of capital provides a critical buffer for the rupee, reducing reliance on foreign exchange reserves to manage currency volatility.

The RBI's strategy to tap non-resident savings directly addresses structural liquidity needs while offering attractive yields to overseas investors.