Noida, July 27 (APAC Media): India is expected to bring in USD 65-70 billion in Foreign Currency Non-Resident (Bank) (FCNR(B)) deposits by the end of the Reserve Bank of India’s special scheme, which would raise total foreign exchange inflows from this initiative to USD 80-85 billion, according to an SBI Research report.
The report said banks have mobilised more funds within just 45 days of the scheme’s launch than were raised during the entire three-month FCNR(B) deposit mobilisation programme undertaken in 2013.
The pace of mobilisation under the scheme has already surpassed the total amount raised during the three-month FCNR(B) deposit drive in 2013, all within just 45 days. Based on the current momentum, India is expected to garner USD 65-70 billion in FCNR(B) deposits by the end of the scheme, with aggregate foreign exchange inflows likely to reach USD 80-85 billion,” the SBI Research report said.
The report said public sector banks accounted for the bulk of the fund mobilisation under the scheme. Citing Reserve Bank of India data, it said FCNR(B) deposits worth USD 17.41 billion The Reserve Bank of India reported that as of July 17, 2026, banks had mobilised FCNR(B) deposits worth USD 17.41 billion. mobilised as of July 17, 2026.
Overall inflows under the scheme stood at USD 20.72 billion by July 17, comprising USD 17.41 billion through FCNR(B) deposits, USD 1.97 billion via Overseas Foreign Currency Borrowings (OFCBs) and USD 1.34 billion from External Commercial Borrowings (ECBs), the report added.
“The special FCNR(B) swap window has improved the attractiveness of foreign currency deposits for NRIs by reducing hedging costs for banks. If the current momentum continues, total inflows could reach the projected range of $80-85 billion,” a banking sector analyst said.
Market experts said the additional foreign currency inflows would enhance India’s balance of payments position and provide the central bank with greater flexibility to manage exchange rate volatility.
“Stronger forex reserves improve investor confidence and act as an important buffer against external shocks. The RBI’s latest measures are expected to support liquidity while reinforcing macroeconomic stability,” an economist said.
Analysts noted that the success of the initiative will depend on global interest rate movements, investor sentiment and sustained participation by the Indian diaspora.
However, the robust initial response indicates that the scheme has generated significant interest among depositors and financial institutions.
The expected inflows come at a time when India continues to focus on maintaining adequate foreign exchange reserves to cushion the economy from global market volatility. If the projected inflows materialise, they would further strengthen the country’s external sector and provide additional support for financial and economic stability, the report said.
–ENDS–
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