Central Bank of India has achieved a major milestone by raising $250 million through the FCNR(B) window. FCNR(B) stands for Foreign Currency Non-Resident (Bank) accounts, which allow NRIs to save money in India in foreign currencies like Dollars. The bank’s Managing Director and CEO, Kalyan Kumar, shared this news during the recent FIBAC event. This achievement is significant because the bank had an internal target of only $100 million for the month of July.

The bank managed to collect these funds primarily through its branch located in GIFT City, Gujarat. GIFT City is a special financial hub in India that follows international rules to attract global business. By using this branch, Central Bank of India has been able to tap into international markets effectively. The bank is not stopping here; it has set a new goal to reach a total of $400 million by the end of September.

To attract these foreign deposits, the bank is offering competitive interest rates. Currently, it offers 6.50 per cent interest on three-year deposits and 6.60 per cent on five-year deposits. A senior executive mentioned that the bank is focusing its marketing efforts on NRIs living in West Asia and Australia. These regions have a large Indian population that looks for safe and profitable ways to send money back home.

This fund-raising activity is part of a special plan introduced by the Reserve Bank of India (RBI). The RBI launched this window to bring more foreign money into India and strengthen the country's foreign exchange reserves. To make it easier for banks, the RBI is also bearing the cost of currency hedging (a way to protect against losses if the value of the Rupee changes). This support makes it cheaper and safer for Indian banks to accept large foreign deposits.

According to the latest data, the entire Indian banking system has seen huge success with this RBI scheme. Total foreign inflows across all banks reached over $40 billion by the end of July. Most of this money has come through FCNR(B) deposits, followed by other methods like overseas borrowings. The special window for these deposits will remain open until September 30, 2026, giving banks plenty of time to grow their foreign currency portfolios.

For bank officers and aspirants, this news shows the growing importance of international banking and GIFT City operations. It also highlights how RBI policies directly help state-owned banks improve their balance sheets. Central Bank of India is also investing heavily in technology to support this growth. CEO Kalyan Kumar noted that the bank plans to spend 1,000 crore rupees on IT (Information Technology) by the financial year 2027.

Going forward, all eyes will be on whether Central Bank of India can hit its $400 million target by September. As the global economy stays volatile, these foreign currency buffers will help the bank stay strong. Bankers should watch for similar moves by other public sector banks as they compete for NRI deposits in the coming months.