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RBI ends FCNR(B) deposit window early after $52 billion inflow
In 67 days, banks raised $56.9 billion in foreign-currency inflows via the RBI window, with FCNR(B) deposits accounting for $52.3 billion.
India’s Reserve Bank of India has shortened a special foreign currency non-resident scheme, limiting new FCNR(B) deposits mobilized under the facility to 31 August instead of a later end date that had been previously communicated.
The RBI said the FCNR(B) window was created to attract dollar inflows from overseas Indians after the rupee moved toward 97 per dollar, and that the central bank is closing it early due to the “encouraging response” that produced resulting forex inflows. The facility was announced on 5 June and implemented on 8 June, and it has since drawn more deposits than expected.
According to data cited by LiveMint, in 67 days banks mobilized $56.85 billion in foreign-currency inflows through the RBI’s special window. FCNR(B) deposits made up $52.3 billion, or 92% of the total, while overseas foreign-currency borrowings contributed $2.81 billion and external commercial borrowings added $1.74 billion.
The RBI said banks can still use corresponding swaps with the central bank until 11 September. Separately, the timelines for ECBs and OFCBs were not changed, with those channels continuing until 31 December 2026, as originally outlined.