SBI Chairman Says FCNR Inflows Need 3-4 Months For Deployment

Banks will require three to four months to fully deploy the liquidity flowing into Foreign Currency Non-Resident deposits, according to CS Setty, chairman of State Bank of India. The gradual deployment approach reflects efforts to integrate substantial foreign inflows into productive banking operations without creating market distortions.

Setty emphasised that the banking sector requires policy measures to reduce initial implementation costs for agentic artificial intelligence systems. Such support would enable wider adoption of AI technologies across Indian banks, potentially transforming service delivery and operational efficiency.

Agentic AI—autonomous systems capable of independent decision-making within defined parameters—represents a frontier technology for the banking sector. Banks view it as crucial for streamlining processes, reducing manual intervention, and enhancing customer experience. However, significant upfront capital expenditure requirements have created barriers to widespread adoption, particularly among smaller institutions.

The SBI chairman's comments come amid efforts to modernise India's banking infrastructure and harness technology for competitive advantage. His remarks underscore industry calls for government and regulatory support to accelerate the digital transformation of financial services across the nation.