RBI’s FCNR Measures Could Attract Up to $85 Billion in Forex Inflows: SBI Research

India could receive foreign-exchange inflows of between $80 billion and $85 billion following the Reserve Bank of India’s special measures to attract Foreign Currency Non-Resident (Bank) deposits and overseas borrowings, according to an SBI Research assessment.

The report projects that FCNR(B) deposits alone could rise to $65–70 billion by the end of the scheme, far exceeding the mobilisation recorded during the comparable 2013 initiative. The estimate reflects strong early inflows, higher deposit rates and the likelihood that a substantial portion of maturing deposits will be renewed.

Data cited in the assessment showed that FCNR(B) deposits worth about $17.41 billion had been mobilised by July 17, 2026. When overseas foreign-currency borrowings and external commercial borrowings were included, total inflows reached approximately $20.72 billion. Public-sector banks accounted for a major share of the mobilisation.

SBI Research expects FCNR(B) deposits to have increased further to $26–28 billion by July 23. On the strength of this momentum, it revised its earlier full-scheme estimate of $40–45 billion upward to $65–70 billion.

The Reserve Bank’s framework allows banks to mobilise eligible FCNR(B) deposits and certain overseas borrowings under a swap facility. RBI has also prescribed reporting requirements for banks covering FCNR(B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings raised under the arrangement.

Higher interest rates offered under special FCNR(B) products are expected to support continued mobilisation. State Bank of India’s official Advantage FCNR(B) scheme, for example, offers three- to five-year US-dollar deposits and remains available until September 30, 2026.

The report also expects a meaningful share of FCNR(B) deposits maturing in August and September to be renewed. A further $10 billion could potentially come from jurisdictions offering favourable tax treatment, while foreign-currency assets may receive another $10–12 billion during the second half of July.

If realised, the inflows would strengthen India’s foreign-exchange reserves, improve the country’s capacity to manage external volatility and provide additional support to the rupee. They would also reinforce confidence in India’s ability to attract stable foreign-currency funding during periods of global financial uncertainty.

1. Reserve Bank of India
   “Swap Facility for FCNR(B) Deposits”
   Official RBI material on the special swap arrangement for eligible FCNR(B) deposits.
   https://www.rbi.org.in/
2. Reserve Bank of India
   “FAQs on Swap Facility for FCNR(B) Deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings”
   Official operational guidance on the RBI swap facility.
   https://www.rbi.org.in/scripts/FAQView.aspx?Id=130
3. Reserve Bank of India
   “Reporting of FCNR(B) Deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings mobilized under Reserve Bank’s Swap Facility”
   Official reporting instructions issued to authorised banks.
   https://www.rbi.org.in/
4. State Bank of India
   “SBI Advantage FCNR(B) Scheme”
   Official details of SBI’s special US-dollar FCNR(B) deposit product, including tenure, interest rates and scheme validity.
   https://sbi.co.in/web/nri/sbi-advantage-fcnr-b-scheme
5. India Brand Equity Foundation
   “India may receive up to US$ 85 billion in forex inflows following RBI’s FCNR move: SBI Research report”
   28 July 2026.
   https://www.ibef.org/news/india-may-receive-up-to-us-85-billion-in-forex-inflows-following-rbi-s-fcnr-move-sbi-research-report