HSBC's Indian operations raised around $6.14 billion between June 5 and July 30, the highest among lenders, according to government data presented in Parliament. SBI, India's largest lender, mobilised around $4.12 billion during the same period.
Among private sector banks, ICICI Bank led with around $3.7 billion. HDFC Bank and Axis Bank raised around $1.5 billion each under the scheme.
The RBI introduced the measures in June as the rupee faced sustained depreciation pressure and approached record lows. The central bank had last used similar steps in 2013, when global markets were dealing with the so-called “taper tantrum” triggered by expectations of tighter US monetary policy.
The latest measures were aimed at making it easier for banks to attract foreign currency deposits from NRIs and increase stable dollar inflows into the country.
Minister of State for Finance Pankaj Chaudhary told the Lok Sabha on Monday that the measures were intended to attract stable foreign currency inflows, strengthen India's balance of payments and ease pressure on the Indian rupee as per Reuters.
Also Read: SBI Raises Over $6 Billion Through RBI's June Policy Measures; Expects $10-15 Billion Inflows
The response from depositors has been strong. The combined stock of banks' overseas foreign currency deposits increased by nearly $28 billion between June 5 and July 30.
Separately, the RBI said on Saturday that the scheme had attracted total inflows of $36.7 billion. The difference between the two figures could be because some existing foreign currency deposits were rebooked under the scheme.
Outstanding Foreign Currency Non-Resident (Bank), or FCNR(B), deposits increased sharply to $60.55 billion by July 30 from $32.56 billion on June 5.
The jump highlights the scale of the response as banks seek to bring more foreign currency into the Indian financial system at a time when the rupee remains vulnerable to global market movements.
IDFC First Bank said the pace of inflows through FCNR(B) deposits, external commercial borrowings and overseas foreign currency borrowings has been stronger than initially expected.
The bank estimated that total inflows through these channels could reach $90 billion or more.
The stronger dollar inflows could provide additional support to India's external finances and help reduce pressure on the rupee, particularly if global conditions remain volatile.
Also Read: Foreign Flows Could Return To India, But Earnings Recovery Remains Key
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