RBI clears the decks with FAQs [2] Commercial banks including their overseas branches are allowed to extend loans to non residents or issue standby letters of credit [SBLCs] in favor of overseas lenders against FCNR[B] deposits under the swap facility announced earlier this month[2] However RBI has not specified the quantum of loans that can be extended against such deposits or the permissible leverage leaving banks to to determine these parameters [3] SBI is offering leverage of upto nine times — Courtesy BS

For example against a $1 million FCNR[B] deposits, a bank may lend upto $9 million to the customer which can then be placed as deposits