Let me tell you in simple way - Why RBI measures is BIG news for financials

India needs dollars. Not rupees — actual US dollars. That's because India buys a lot of things from other countries (like oil and machines) and pays in dollars, and having a big pile of dollars saved up keeps our rupee steady and the country safe. Think of dollars as the "fuel tank" of the economy.
India's main bank — the RBI, which is like the "captain of all banks" — wants to fill that fuel tank quickly. So it has opened two special doors to let dollars flow in:

1. FCNR-B — Inviting Indians living abroad to keep their dollar savings in Indian banks.
2. ECB — Letting Indian banks and big government companies borrow dollars from foreign lenders.
   To make people excited to bring their dollars, RBI sweetened the deal in two big ways. First, banks used to pay a kind of insurance cost (about 3.5% last time, in 2013) to protect against currency ups and downs — this time RBI says "don't worry, I'll cover that cost for you." So the deal is cheaper for everyone.
   Second — and this is the clever part — RBI is allowing something called leverage. Here's the pocket-money way to picture it: imagine you put in ₹10 of your own money, and the bank lets you play the game with ₹100 (that's 10 times more). Even a tiny profit on ₹100 feels huge compared to your original ₹10. That's exactly why investors abroad will rush in — a small gain (1.5–2%) becomes a big-looking return (17–27%) once it's multiplied 7–10 times.
   Why it's big news: India tried something similar in 2013 and pulled in about $34 billion, which really helped the country at a tough time. This time the deal is better, so the expectation is $50–70 billion — almost double. That much money pouring in helps keep the rupee stable, fills the dollar fuel tank, and gives banks more money to lend out (which helps the whole economy grow).
   Banks benefit most, and most directly. Here's the plain reasoning:
   The two doors RBI opened are mainly bank doors. FCNR-B is a bank-only product — only banks can collect these dollar deposits, so the spread and the funding land straight on bank balance sheets. The ECB window here is opened to banks and government companies (PSUs), again putting banks at the front of the queue. The 2013 playbook tells the same story — HDFC Bank pulled in the largest pool (about $3.4 billion), followed by ICICI, SBI and a few foreign banks. The banks that move fastest and have the strongest overseas customer networks tend to grab the biggest share.
   NBFCs benefit too, but second-hand. They aren't allowed to collect FCNR-B deposits, so they don't sit at the door. Their gain is indirect: when banks suddenly have a flood of cheap dollars and rupee liquidity, the overall cost of money in the system tends to drift down. NBFCs borrow heavily from banks, so cheaper, more plentiful bank funding eventually makes life easier and margins better for them — especially the larger ones. (Some big NBFCs can also tap ECB directly under the general rules, but that's a smaller, separate channel from this special window.)
   
   Hope this helps.