Explained: Why RBI’s FCNR(B) and ECB swap window could be a game changer for banks

RBI has launched a new FCNR(B) and ECB swap window (June 8 to September 30, 2026) allowing banks to raise foreign currency deposits at zero hedging cost, a marked improvement over the 2013 scheme's 3.5% fee. Banks have raised FCNR(B) rates by 200-300 bps to 6-7%, and RBI projects $40-50 billion in combined FY27 inflows, which could ease FII selling pressure (~$45 billion net selling since CY24) and strengthen the rupee. Separately, RBL Bank is highlighted with a target price of Rs 405, citing benefits from the proposed Emirates NBD open offer, strong 4QFY26 business momentum, and 20%+ loan growth guidance for FY27.