Current affairs, 24 September 2026: RBI on FCNR(B) liquidity deployment and rating agencies flag repo-rate hikes

24 September 2026 brings RBI guidance on FCNR(B) liquidity ahead of the festive credit season and fresh rate-hike signals from rating agencies with repo unchanged at 5.25% — liquidity, policy-rate and inflation flashpoints for banking papers.

RBI: banks to deploy FCNR(B) liquidity; window closed early (Deputy Governor Jain)

On 24 September 2026, RBI Deputy Governor Rohit Jain, speaking at the 13th SBI Banking & Economics Conclave in Mumbai, said banks are expected to deploy additional liquidity mobilised under the special FCNR(B) deposit scheme over the coming months amid strong festive-season credit demand; banks retain full discretion on deployment. The RBI closed the FCNR(B) window a month early — from 30 September to 31 August — after a strong response; combined FCNR(B)/ECB/OFCB inflows stood at about USD 143.6 billion till 18 September. ThePrint/PTI

Repo at 5.25%: S&P, Fitch and SBI Research flag hikes; August CPI 4.82%

With the RBI repo rate held at 5.25% (unchanged since August; fourth consecutive MPC meeting without a change), rating agencies flagged a possible tightening cycle: S&P Global expects a 25 bps hike to 5.5% this fiscal year, while Fitch sees hikes taking the rate to 5.75% by early 2027; SBI Research also favours an October hike. August CPI inflation was 4.82% (up from 4.45% in July); the next MPC meeting is scheduled for 5–7 October 2026. Business Today

Why it matters for an exam: FCNR(B) = DG Jain 24 Sep, SBI Conclave Mumbai, deploy liquidity, window closed 31 Aug (was 30 Sep), ~USD 143.6 bn inflows till 18 Sep; Rates = repo 5.25% (4th hold), S&P 5.5% FY, Fitch 5.75% early 2027, CPI Aug 4.82%, MPC 5–7 Oct 2026.

What to write in your notebook

Three lines:

1. FCNR(B) / liquidity: 24 Sep 2026, DG Rohit Jain, 13th SBI Banking & Economics Conclave, Mumbai; deploy FCNR(B) liquidity; window closed 31 Aug (early vs 30 Sep); inflows ~USD 143.6 bn till 18 Sep (FCNR(B)/ECB/OFCB).
2. Repo / MPC: 5.25% unchanged (4th straight hold); next MPC 5–7 Oct 2026.
3. Rate outlook & CPI: S&P +25 bps → 5.5% this FY; Fitch 5.75% by early 2027; SBI Research October hike; Aug CPI 4.82% (Jul 4.45%).