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India Bank Deposits Surge to Record Rs 284 Lakh Crore
M
Moneycontrol•15-10-2026, 16:48
India Bank Deposits Surge to Record Rs 284 Lakh Crore
- •India's banking system deposits reached a record high of around 284 trillion rupees in the second half of September.
- •Deposits increased by 21.67 trillion rupees during the first six months of the financial year.
- •A discounted swap window introduced by the RBI in June helped attract foreign currency inflows of around $133 billion.
- •Lenders made strong efforts to build funding buffers ahead of the quarter-end, driving significant inflows.
- •CareEdge Ratings noted that future term deposit rates may rise due to credit growing faster than deposits.
Key Questions Answered
Bank deposits reached a record high driven by heavy inflows between June and August, supported by the Reserve Bank of India's discounted swap window to attract foreign-currency deposits, alongside lenders' efforts to build funding buffers.
The discounted swap window scheme attracted inflows of around $133 billion before the deposit window was closed early on August 31.
The October rate hike is expected to push term deposit rates up as banks need to fund faster-growing credit while the liquidity surplus shrinks.
