FCNR(B) window may save banks Rs 4,000 crore

RBI's FCNR(B) deposit window, open from June 26 to September 30 for 3-5 year tenures, could save banks approximately Rs 4,000 crore annually by reducing funding costs from ~7% domestic FD rates to 6% on FCNR(B) deposits. The window could channel up to Rs 5 lakh crore of durable liquidity into the banking system, equivalent to about 12% of FY27 projected incremental deposits, with CRR/SLR exemptions allowing full deployment into earning assets to support margins.