Punjab & Sind Bank is calling on the Reserve Bank of India to relax regulatory norms governing Foreign Currency Non-Resident (B) deposits, specifically for lenders that do not operate overseas branches.
The bank’s managing director and CEO, Swarup Kumar Saha, indicated that the current framework places domestic-only lenders at a structural disadvantage compared to peers with international footprints.
Indian Bank, for instance, has secured $140 million in fresh FCNR(B) deposits since the window opened, while South Indian Bank is targeting inflows of up to $1 billion by the end of September 2026.
The request comes as Indian banks are aggressively pursuing foreign currency deposits to bolster liquidity and manage currency risk.
The RBI launched a new swap window in June to facilitate these inflows, a move that has already triggered significant activity across the sector.
Indian Bank, for instance, has secured $140 million in fresh FCNR(B) deposits since the window opened, while South Indian Bank is targeting inflows of up to $1 billion by the end of September 2026.
Punjab & Sind Bank’s push for regulatory relief highlights a growing divergence in how Indian lenders are navigating the foreign exchange landscape.