New Delhi, July 1 -- New FCNR deposit rules are expected to lift bank deposit growth by 150-200 basis points, supporting stronger liquidity and driving credit growth of around 14-15 per cent in FY27, with industrial lending likely to emerge as a key demand driver amid government push to boost manufacturing in India, says Anand Rathi.

The RBI's recently announced twin forex swap facilities cover FCNR(B) deposits. Under this arrangement, the central bank will absorb hedging costs on FCNR(B) deposits with 3-5 year maturities raised until September 30, 2026, along with an exemption from CRR and SLR requirements on such deposits. This allows banks to offer more attractive FCNR(B) deposit rates of up to around 6-7.1 per cent.

Noting the banki...