PSBs expect to raise $30 bn from RBI’s overseas deposit scheme, sources say
BusinessLine 1d ago·17 Jul 2026, 8:28 am
Public Sector Banks (PSBs) are reportedly planning to raise about $30 billion through a new scheme launched by the Reserve Bank of India (RBI). This program offers a zero-cost foreign exchange swap facility to Non-Resident Indians (NRIs), allowing them to deposit foreign currency in Indian banks. In return, the banks provide rupees, effectively helping them manage their currency exposure without incurring direct costs.
This move is significant for the banking sector as it aims to bolster foreign exchange reserves and provide a stable funding source for PSBs. For investors, it signals a positive step towards improving the financial health of state-run lenders, potentially boosting their capital adequacy and ability to lend.
Investors should monitor the actual disbursement of funds and the long-term impact on these banks' balance sheets. The success of this scheme will depend on the volume of deposits mobilized from NRIs and how effectively the banks utilize these funds to support growth.
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