India’s banking system liquidity is expected to peak in Q2FY27. This is due to strong inflows under the Reserve Bank of India’s Foreign Currency Non-Resident (Bank), or FCNR(B), deposit scheme to boost cash availability with banks. According to IDFC FIRST Bank, the FCNR(B) scheme is expected to attract more than $50bn inflows IDFC FIRST Bank noted that this surge in liquidity will ease pressure on money market rates, improve banks’ funding position and support credit growth.