Mumbai: An RTI query has revealed that the fixed deposits (FDs) of the BMC, the richest civic body in India, have declined by Rs 12,192 crores over the past four years. In 2021-2022, the BMC held Rs 91,690 crore in FDs. That amount has since decreased to Rs 79,498 crore.
According to civic officials, the substantial reduction is primarily due to increased spending on large-scale infrastructure development projects undertaken across the city during this period.
FD Growth and Subsequent Drop
Godfrey Pimenta, founder of the Watchdog Foundation, had sought details of the BMC's FDs for the period between 2014–15 and 2024–25 through a RTI request. According to the BMC’s response, its FD reserves saw a consistent rise from 2014–15 up until 2021–22.
However, after surpassing Rs. 91,000 crore, the deposits have been on a steady decline year after year. In its February 2025–26 budget, the BMC announced it held Rs 81,000 crore in FDs — a figure that has since dropped by another Rs 2,000 crore in just the past eight months.
FD Allocation and Obligations
The BMC's FDs are held across various state-run and select private banks. Of the total Rs 79,498 crore in FDs, Rs 39,543 crore is earmarked for mandatory obligations such as employee provident fund, pensions, gratuity, contractor payments, and other special funds, and is not available for development use.
However, the remaining Rs 42,230 crore will be directed towards major infrastructure projects, including Phase 2 of the Mumbai Coastal Road (Versova to Dahisar-Bhayander Link Road), the desalination plant, Gargai dam project, and the construction of several bridges. For the financial year 2025–26, the BMC has also approved an internal temporary transfer of Rs 16,699.78 crore from its FDs to support these initiatives.
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Efforts to Boost Interest Income
"We have also been exploring ways to increase our fixed deposits,” said a senior civic official. “The BMC now places its FDs with banks offering the highest interest rates. Since July 2024, we have implemented a transparent and competitive online system for FD placements, replacing the earlier process where banks submitted interest rate quotes via email or letter. This new system is expected to generate Rs. 1,000 crore more in interest income compared to the previous financial year," he added.
BMC’s Fixed Deposit Position Over the Years
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