Current Context: According to RBI data reported on 15 October 2026, deposits in India’s banking system reached approximately ₹284 lakh crore, equivalent to US$2.99 trillion, during the second half of September 2026. The milestone reflected substantial foreign-currency inflows and banks’ efforts to strengthen their funding position before the quarter-end.
Key Points:
- Deposit growth: Total deposits increased by ₹21.67 lakh crore during April–September 2026, registering 8.4% growth over March-end.
- Major driver: The RBI’s discounted dollar-swap window encouraged banks to mobilise foreign-currency deposits, attracting approximately US$133 billion.
- Scheme closure: The deposit window closed on 31 August 2026, one month earlier than originally planned.
- Quarter-end mobilisation: Banks attracted ₹7.73 lakh crore during the fortnight ended 30 September, strengthening their funding buffers.
- Banking significance: Deposits provide banks with funds for lending and investment. A larger deposit base can support credit expansion, subject to liquidity, capital and regulatory requirements.
Question:
Q1. Which RBI measure was a major contributor to the increase in India’s banking-system deposits to approximately US$3 trillion in September 2026?a) Reduction in the Statutory Liquidity Ratio
b) Introduction of a discounted dollar-swap window
c) Increase in deposit-insurance coverage
d) Suspension of foreign-currency deposits
e) Mandatory conversion of savings accounts into fixed deposits
Answer: b) The RBI’s discounted dollar-swap window encouraged banks to raise foreign-currency deposits by providing favourable swap terms. The facility attracted approximately US$133 billion, contributing significantly to the expansion of banking-system deposits.
