In a move aimed at boosting foreign exchange inflows, the Reserve Bank of India (RBI) has notified that bank loans granted against fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] and Non-Resident External (NRE) term deposits will be excluded from net bank credit calculations used to determine mandatory Priority Sector Lending (PSL) targets.
Key Policy Regulatory Reliefs
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Applicability Window:
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FCNR(B) Deposits: Fresh deposits raised between June 8 and September 30.
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NRE Term Deposits: Fresh term deposits raised between June 19 and September 30.
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Priority Sector Impact: Under standard RBI rules, commercial banks must allocate at least 40% of Adjusted Net Bank Credit (ANBC) to priority sectors (including agriculture, MSMEs, housing, education, and export credit). Excluding these advances reduces the net base, easing the PSL burden on banks.
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Prior Reserve Ratio Reliefs: This PSL relaxation follows earlier RBI decisions exempting fresh FCNR(B) deposits (including maturity renewals) from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements.
Inflow Data & Dollar Mobilization
The central bank’s targeted schemes to attract foreign capital have driven substantial foreign currency inflows, outperforming previous historic mobilization benchmarks:
| Metric / Facility | Figures & Highlights |
| Total Inflows (Up to July 31) | $40.81 billion mobilised under the special foreign exchange measures. |
| FCNR(B) Contribution | $36.72 billion (surpassing the $26 billion raised during the 2013 currency volatility window). |
| RBI Swap Facility | Special zero-cost hedging swap facility available to banks until September 30. |
