The Deputy Governor of the Reserve Bank of India, Rohit Jain, mentioned on September 24, 2026, that banks will use the surplus liquidity they obtain through foreign currency non-resident deposits (FCNR-B) within the coming months. Credit demand is anticipated to continue its rise during the festive season, he said. The banks had increased US$133 billion through the FCNR-B deposit scheme.

The closing date of the scheme was set for August 31, one month earlier than planned due to a good response of Indians living abroad. Jain addressed to the media during the 13th SBI Banking and Economics Conference. Jain mentioned that the RBI had discussed the liquidity situation of banks. However, the RBI's Deputy Governor made it clear that the RBI does not instruct the banks regarding where to utilize their funds. Banks will have full freedom in deploying FCNR(B) liquidity based on their loan pipeline, proposals, and liquidity scenario.

The RBI's special INR-US dollar foreign currency swap facility was introduced on June 8, 2026, for the purpose of FCNR(B), foreign currency borrowing (OFCBs) and external commercial borrowings (ECBs). While the FCNR(B) scheme expired on August 31, the ECB and OFCB window will be operational till December 31, 2026. According to the data provided by the authorized dealers' banks as of September 18, total flows through FCNR(B), ECBs, and OFCBs amount to US$143.596 billion. Now India is the fifth largest country in terms of foreign exchange reserves in the world.

Jain explained that foreign exchange reserves are managed with three main considerations: safety, liquidity, and yield. The reserves are diversified across geographies, currencies, and asset classes. The RBI's objective is to ensure external resilience and maintain foreign investor confidence. He also noted that the state government securities market is fragmented and secondary market liquidity is weak. The RBI is encouraging states to increase reissuance. The central bank is also encouraging states to adopt a benchmark issuance strategy similar to the central bank's.

The RBI is positive about tokenization and sees significant potential for this technology in the financial sector. Tokenization can enable digital ownership records, automated settlements, and operational efficiency. However, the RBI expects adequate safeguards and security measures before widespread adoption. Jain stated that technology has transformed Indian banking over the past two decades.

Technology risk, and especially technology architecture risk, must now be recognized as a first-order enterprise risk. Cybersecurity is no longer just about protecting an institution's outer perimeter. The threat landscape is becoming more complex. Sound technology governance isn't about eliminating every possibility of failure. It's about developing the institutional capacity to identify vulnerabilities early and make informed decisions.

The Deputy Governor of the Reserve Bank of India, Rohit Jain, mentioned on September 24, 2026, that banks will use the surplus liquidity they obtain through foreign currency non-resident deposits (FCNR-B) within the coming months. Credit demand is anticipated to continue its rise during the festive season, he said. The banks had increased US$133 billion through the FCNR-B deposit scheme.

The closing date of the scheme was set for August 31, one month earlier than planned due to a good response of Indians living abroad. Jain addressed to the media during the 13th SBI Banking and Economics Conference. Jain mentioned that the RBI had discussed the liquidity situation of banks. However, the RBI's Deputy Governor made it clear that the RBI does not instruct the banks regarding where to utilize their funds. Banks will have full freedom in deploying FCNR(B) liquidity based on their loan pipeline, proposals, and liquidity scenario.

The RBI's special INR-US dollar foreign currency swap facility was introduced on June 8, 2026, for the purpose of FCNR(B), foreign currency borrowing (OFCBs) and external commercial borrowings (ECBs). While the FCNR(B) scheme expired on August 31, the ECB and OFCB window will be operational till December 31, 2026. According to the data provided by the authorized dealers' banks as of September 18, total flows through FCNR(B), ECBs, and OFCBs amount to US$143.596 billion. Now India is the fifth largest country in terms of foreign exchange reserves in the world.

Jain explained that foreign exchange reserves are managed with three main considerations: safety, liquidity, and yield. The reserves are diversified across geographies, currencies, and asset classes. The RBI's objective is to ensure external resilience and maintain foreign investor confidence. He also noted that the state government securities market is fragmented and secondary market liquidity is weak. The RBI is encouraging states to increase reissuance. The central bank is also encouraging states to adopt a benchmark issuance strategy similar to the central bank's.

The RBI is positive about tokenization and sees significant potential for this technology in the financial sector. Tokenization can enable digital ownership records, automated settlements, and operational efficiency. However, the RBI expects adequate safeguards and security measures before widespread adoption. Jain stated that technology has transformed Indian banking over the past two decades.

Technology risk, and especially technology architecture risk, must now be recognized as a first-order enterprise risk. Cybersecurity is no longer just about protecting an institution's outer perimeter. The threat landscape is becoming more complex. Sound technology governance isn't about eliminating every possibility of failure. It's about developing the institutional capacity to identify vulnerabilities early and make informed decisions.