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Central Bank of India Raises $250M via RBI FCNR(B) Window

By ThePip DeskCentral Bank of India Raises $250M via RBI FCNR(B) Window

Central Bank of India successfully mobilised $250M via RBI’s FCNR(B) window, surpassing its July target. Funds raised through GIFT City branch, aiming for $400M by Sept 2026.

Central Bank of India has successfully mobilised $250 million through the Reserve Bank of India’s (RBI) Foreign Currency Non-Resident (Bank) or FCNR(B) window. This achievement significantly surpassed its internal July target of $100 million.

Kalyan Kumar, the Managing Director and CEO, confirmed these funds were raised via the bank’s GIFT City branch. The bank is now targeting a total accumulation of $400 million by September 30, 2026, aligning with the RBI’s special swap facility deadline.

Understanding the FCNR(B) Mechanism

The Reserve Bank of India introduced this specific FCNR-B window in June to boost foreign capital inflows into the country. A key feature of this facility is the RBI bearing the cost of currency hedging, making it more attractive for banks.

This initiative aims to enhance India’s external financial position by drawing in foreign currency. It provides a structured mechanism for banks to raise funds from overseas markets.

Key Financial Details and Targets

  • Central Bank of India mobilised $250 million, exceeding its July target of $100 million.
  • The bank aims to accumulate a total of $400 million by September 30, 2026.
  • Interest rates offered for three-year deposits stand at 6.50%.
  • Five-year deposits are offered at an interest rate of 6.60%.

The bank is actively seeking these deposits from markets in the Middle East and Australia. This strategic outreach supports their broader fundraising objectives under the FCNR(B) framework.

Broader Inflows and IT Investments

As of July 31, total forex inflows under this specific RBI facility reached $40.816 billion. FCNR(B) deposits constituted the largest portion of these inflows, accounting for $36.725 billion.

The window for Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs) remains open until December 31, 2026. Separately, Kumar noted the bank’s current IT capital expenditure is 8-9% of its total spending.

The projected IT capex for FY27 is set at ₹1,000 crore. This indicates a significant focus on technological infrastructure development within the bank.

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