INDIAN BANKING RADAR (IBR)-Banking • RBI • Treasury • Cooperative Banking • PACS • Economy Intelligence

📅 09 June 2026 | Tuesday

"Turning Banking News into Banking Knowledge"

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📌 EXECUTIVE SUMMARY

🔹 RBI launches a major Forex Mobilisation Package through FCNR(B) Deposit Swap and PSU ECB Swap Facilities.

🔹 Fresh FCNR(B) deposits mobilised between 8 June and 30 September 2026 exempted from CRR and SLR requirements.

🔹 RBI excludes eligible FCNR(B), ECB and OFCB swap positions from NOP-INR limits, enhancing treasury flexibility.

🔹 NABARD refines the Enhanced E-CAMELSC Supervisory Rating Framework for StCBs and DCCBs.

🔹 Ministry of Cooperation continues implementation of Model PACS Bye-laws to transform PACS into multi-service rural institutions.

🔹 RBI imposes monetary penalties on cooperative banks in Haryana and Maharashtra.

🔹 Government reduces subsidised LPG cylinder entitlement under PM Ujjwala Yojana from 9 to 4 annually.

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🔴 TOP STORY OF THE DAY

🌍 RBI UNVEILS FOREX MOBILISATION PACKAGE

In a significant move to strengthen India's external sector and support rupee stability, RBI has operationalised special forex swap facilities for FCNR(B) deposits and eligible overseas borrowings.

1️⃣ FCNR(B) Deposit Swap Facility

✅ Applicable for fresh FCNR(B) deposits mobilised between 8 June and 30 September 2026.

✅ Deposit tenor: Minimum 3 years and maximum 5 years.

✅ Available through AD Category-I Banks.

✅ Swap available in US Dollars.

✅ Facility available till 16 October 2026.

2️⃣ PSU ECB / OFCB Swap Facility

✅ Available till 31 December 2026.

✅ Fixed swap cost: 1.5% per annum.

✅ Applicable to eligible overseas borrowings.

Expected Benefits

• Higher NRI deposit inflows.

• Stronger forex reserves.

• Improved rupee stability.

• Better liquidity conditions.

• Enhanced investor confidence.

🏦 Banking Insight

This initiative is widely viewed as a modern adaptation of RBI's successful FCNR(B) mobilisation strategy used during the 2013 external sector stress period.

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🏛 RBI & BANKING WATCH

💰 FCNR(B) DEPOSITS EXEMPTED FROM CRR & SLR

RBI has exempted fresh FCNR(B) deposits mobilised between 8 June and 30 September 2026 from maintenance of:

✅ Cash Reserve Ratio (CRR)

✅ Statutory Liquidity Ratio (SLR)

Why This Matters

• Reduces cost of funds.

• Improves deployable resources.

• Encourages long-term forex mobilisation.

• Supports banking system liquidity.

Practical Banking Example

Unlike ordinary deposits, eligible FCNR(B) deposits under this scheme can be deployed without maintaining CRR and SLR against them, improving resource efficiency.

🌐 RBI RELAXES NOP-INR LIMITS

Positions arising from:

• FCNR(B) Swaps

• ECB Swaps

• Overseas Foreign Currency Borrowings (OFCBs)

will not be counted for NOP-INR limit calculations.

Treasury Significance

✓ Greater flexibility in forex operations.

✓ Easier participation in RBI swap schemes.

✓ Improved balance sheet management.

✓ Better treasury risk management.

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🏦 COMMERCIAL BANKING WATCH

📈 FOREIGN CURRENCY MOBILISATION EXPECTED TO SUPPORT BANK LIQUIDITY

Banking analysts expect the RBI forex package to improve:

• Long-term foreign currency funding.

• Deposit mobilisation opportunities.

• Treasury flexibility.

• External sector resilience.

Banking Outlook

Large commercial banks with strong NRI franchises are expected to be the primary beneficiaries of the FCNR(B) mobilisation programme.

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🤝 COOPERATIVE BANKING WATCH

🏦 NABARD REVISES E-CAMELSC GUIDANCE NOTES

NABARD has issued revised Guidance Notes under the Enhanced E-CAMELSC Supervisory Rating Framework for State Cooperative Banks and DCCBs.

Areas Receiving Greater Supervisory Attention

Governance

• Board effectiveness.

• Risk governance.

• Compliance culture.

Treasury Management

• SLR portfolio monitoring.

• Investment policy compliance.

• Interest Rate Risk management.

Liquidity & ALM

• Deposit concentration risk.

• Liquidity buffers.

• Contingency funding planning.

Technology & Cyber Security

• CBS controls.

• Information security.

• Vendor risk management.

🏦 DCCB/APCOB Takeaway

Future supervisory assessments will increasingly focus on governance quality, treasury discipline, technology resilience and compliance effectiveness.

📊 DCCB TREASURY ALERT

DCCBs should review:

✅ Investment Policy implementation.

✅ SLR and Non-SLR portfolio performance.

✅ HTM/AFS/HFT classification.

✅ Investment Committee effectiveness.

✅ Interest Rate Risk and MTM exposure.

Treasury Learning

A strong treasury function improves profitability, liquidity management and supervisory ratings.

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🌾 PACS & RURAL COOPERATION WATCH

🇮🇳 MODEL PACS BYE-LAWS CONTINUE TO DRIVE TRANSFORMATION

The Ministry of Cooperation is encouraging wider adoption of Model PACS Bye-laws across States to transform PACS into vibrant multi-purpose cooperative institutions.

New Activities Permitted Under Model Bye-Laws

✅ Warehousing and storage.

✅ Agricultural input marketing.

✅ Dairy and fisheries activities.

✅ Common Service Centres (CSC).

✅ Banking Correspondent services.

✅ Rural e-governance services.

Why It Matters

Traditionally, many PACS depended primarily on seasonal crop lending.

The revised bye-laws enable PACS to diversify business activities and create sustainable non-credit income streams.

PACS Management Insight

Diversified PACS are generally more resilient, financially stronger and better positioned to serve rural communities.

🏦 PACS: THE FOUNDATION OF RURAL COOPERATIVE CREDIT

India's Short-Term Cooperative Credit Structure operates through:

Three-Tier Structure

PACS → DCCB → StCB

Why PACS Matter

✔ First point of contact for rural borrowers.

✔ Largest grassroots cooperative network.

✔ Major channel for agricultural credit delivery.

✔ Important institution for financial inclusion.

DCCB Perspective

The financial health and recovery performance of PACS significantly influence the asset quality and business performance of DCCBs.

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🚨 REGULATORY ENFORCEMENT WATCH

RBI PENALISES TWO COOPERATIVE BANKS

RBI imposed monetary penalties on:

• The Karnal Central Cooperative Bank Ltd., Haryana.

• The Amravati Merchants Sahakari Bank Ltd., Maharashtra.

Compliance Lesson

Most supervisory penalties arise due to:

✔ Regulatory non-compliance.

✔ Weak internal controls.

✔ KYC/AML deficiencies.

✔ Governance lapses.

Inspection Message

Strong compliance systems are always less costly than regulatory penalties.

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📈 TREASURY & FOREX WATCH

📊 MARKET SNAPSHOT

Indicator

Current Position

Forex Reserves

~US$698 Billion

Banking System Liquidity

Comfortable

Rupee Outlook

Supported by RBI measures

Bond Market Sentiment

Positive

Crude Oil

Key risk to monitor

G-Sec Market

Stable

📚 TREASURY CONCEPT OF THE DAY

What Is a Forex Swap?

A Forex Swap involves:

1️⃣ Selling foreign currency today.

2️⃣ Simultaneously agreeing to repurchase it at a future date.

Benefits

✓ Liquidity management.

✓ Exchange risk mitigation.

✓ Lower funding costs.

✓ Market stability.

🎓 TREASURY EXAM FACT

FCNR(B) Deposits

✔ Maintained in foreign currency.

✔ Freely repatriable.

✔ Protected from exchange-rate risk for depositors.

✔ Important source of foreign exchange inflows.

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📚 COMPLIANCE & INSPECTION CORNER

DEAF FUND – IMPORTANT INSPECTION TOPIC

DEAF Stands For

Depositor Education and Awareness Fund

Key Requirement

Deposits remaining unclaimed for 10 years or more must be transferred to DEAF.

Important Rule

✔ Depositor rights remain intact.

✔ Bank pays the customer first.

✔ Bank claims reimbursement from RBI later.

Inspection Observation

Delayed transfer of eligible balances continues to be a common compliance deficiency.

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🎯 BANKING ASPIRANTS CORNER

❓ TODAY'S MCQ

Under RBI's FCNR(B) Deposit Swap Facility announced in June 2026, eligible deposits must have a maturity period of:

A) 1–3 Years

B) 2–4 Years

C) 3–5 Years

D) 5–7 Years

E) Above 7 Years

✅ Answer Tomorrow

📢 YESTERDAY'S ANSWER

Which RBI measure announced in June 2026 is specifically intended to attract long-term foreign currency inflows into the banking system?

✅ Answer: FCNR(B) Deposit Swap Facility

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📊 NUMBERS THAT MATTER

📌 FCNR(B) Mobilisation Window: 30 September 2026

📌 FCNR(B) Swap Facility Available Till: 16 October 2026

📌 PSU ECB Swap Facility Available Till: 31 December 2026

📌 ECB Swap Cost: 1.5% p.a.

📌 Forex Reserves: ~US$698 Billion

📌 Repo Rate: 5.25%

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💡 IBR INSIGHT OF THE DAY

"Strong governance, treasury discipline, technology resilience and compliance culture are emerging as the four pillars of supervisory success for cooperative banks and DCCBs."

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📣 CONNECT • LEARN • GROW

📌 Share this bulletin with fellow bankers, DCCB officials, PACS staff and banking aspirants.

📌 DCCB Officers: Review today's E-CAMELSC, Treasury Governance and ALM points with your teams.

📌 PACS Secretaries & Staff: Study the opportunities available under Model PACS Bye-laws and identify new business avenues for your PACS.

📌 Treasury Officials: Revise FCNR(B), Forex Swaps, NOP-INR and Interest Rate Risk concepts covered today.

📌 Banking Aspirants: Save today's bulletin for JAIIB, CAIIB, IBPS, RBI, NABARD and Cooperative Bank promotion examinations.

📲 Forward IBR to your professional groups and help build a stronger banking knowledge community.

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🌐 INDIAN BANKING RADAR (IBR)

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