- State Bank of India expects to mobilise $9 billion to $10 billion by August 31, 2026, mainly through deposits.
- The RBI moved the FCNR(B) deposit deadline up one month, cutting support from September 30 to August 31.
- SBI had already raised about $6 billion under the special window by August 7, while ECB support continues to December 31.
State Bank of India expects to mobilise $9 billion to $10 billion from non-resident Indians and foreign investors by August 31, 2026, after the Reserve Bank of India shortened the timetable for concessional foreign-currency funding support.
The fundraising will rely chiefly on deposits. External Commercial Borrowings will add a second source of funds.
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C S Setty, chairman of SBI, said the bank was approaching the upper end of its consolidated estimate. He said deposits would account for most of the mobilisation, although the borrowing channel also showed potential.
“In aggregate, we must be reaching the USD 10 billion mark, predominantly coming from the deposit side. But there is visibility of ECBs. ECB, of course, will have a longer period available to us, but by August 31, we should have mobilised around $9-10 billion on a consolidated basis.”
Setty’s estimate covers both funding channels rather than a new equity issue or a bond-only transaction.
The RBI moved the deposit deadline forward by one month
The central bank brought forward the closing date for the FCNR(B) deposit swap window from September 30, 2026 to August 31, 2026. Banks therefore have one fewer month to obtain the special swap support for deposits raised through the facility.
The RBI’s separate US dollar-rupee forex swap window remains available to public sector undertakings raising External Commercial Borrowings. That facility runs until December 31, 2026.
The two deadlines govern different funding routes. The deposit-related support ends first, while the ECB-linked support continues into the final month of the year.
Deposits supply most of the target, with ECBs adding a second channel
SBI’s projected mobilisation combines FCNR(B) deposits from NRIs and foreign investors with related foreign-currency borrowing. Deposits are expected to provide the larger share.
The FCNR(B) account product itself remains available after August 31. The change removes the concessional RBI swap backing for deposits mobilised under the special window.
That leaves the bank working against separate clocks. Deposit mobilisation must meet the earlier cutoff, while ECB transactions can continue to draw on the other swap arrangement through December 31.
SBI had already raised billions before the final push
SBI had collected about $6 billion under the special FCNR(B) window by August 7, 2026. An earlier figure placed the programme’s total fundraising at roughly $7.3 billion.
Setty had previously said the bank had “no specific target” and expected ongoing demand to lift the amount toward $10 billion. The latest projection sets the consolidated expectation at $9 billion to $10 billion by the revised deadline.
| Fundraising measure | Amount | Timing |
|---|---|---|
| Funds raised under the special FCNR(B) window | About $6 billion | August 7, 2026 |
| Earlier reported programme total | Roughly $7.3 billion | Earlier stage |
| Consolidated mobilisation expectation | $9 billion to $10 billion | By August 31, 2026 |
The figures represent different stages of the campaign. The final estimate includes both deposit mobilisation and ECB activity.
More than $50 billion in inflows accelerated the closing decision
The RBI advanced the deadline after inflows into its special scheme passed $50 billion by mid-August. Another reported tally put the amount at $52.3 billion by that point.
The strong response prompted the central bank to end the deposit swap facility earlier than planned. Analysts and bankers connected the decision with the scale of inflows and concerns over liquidity and funding costs.
The deadline change came on August 14, 2026. Lenders then faced a narrower window for transactions receiving the special FCNR(B) swap support.
Banks are accelerating dollar fundraising before the cutoff
Indian lenders moved faster on dollar loans and bond issuance after the RBI brought forward the closure date. Bankers said banks were on track to raise at least $5 billion through bonds and loans in the two weeks after the announcement.
Banking stocks fell after the early closure decision. Investors viewed the move as the loss of a funding opportunity that had offered concessional swap support.
The rush has extended beyond deposit gathering. Banks are also seeking to complete dollar borrowing while the available funding window remains open.
The ECB-related support remains available until year-end
The separate ECB-related swap support continues until December 31, 2026. The special support for new FCNR(B) deposits ends on August 31, 2026.
SBI can therefore continue pursuing the borrowing component after the deposit deadline, provided transactions qualify for the separate facility. The earlier cutoff applies to the concessional swap backing for deposits, not to the continued availability of the underlying FCNR(B) product.
