Sanjeev Mehta, a former managing director at Standard Chartered Bank, has highlighted the potential role of FCNR(B) inflows in supporting bank lending. His assessment links the increase in available funds with banks’ ability to respond to consumer demand during the festive period.

The key point is the connection between deposits and lending capacity. As these foreign-currency deposits improve liquidity, banks have more funds available for lending opportunities. The report presents this as support for anticipated demand, rather than confirmation that banks have already expanded their lending.

There is also a caution about how banks use the money. The supplied report warns that leaving deposits idle can expose banks to financial losses. Its message is therefore not simply that more deposits are helpful: banks also need to consider how to put the additional liquidity to use.

The available text does not give an inflow amount, identify banks receiving the deposits or quantify any likely lending increase. It also does not specify the consumer loan categories that might benefit. The outlook remains broad, with no detailed forecast of how much festive demand these inflows could support.