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India sees $127.2 billion in FCNR deposits before scheme end
RBI said its dollar swap facility attracted $136.4 billion through 31 August, with FCNR-B the largest component, as the central bank extended the FCNR-B closure date to 31 August.
India attracted $127.2 billion into its banks via foreign currency non-resident deposits under a new incentive scheme designed to draw dollars and support the rupee, according to LiveMint Markets citing Reserve Bank of India data.
The RBI said the FCNR-B deposits drove most of the inflows, with a total of $136.4 billion received through its dollar swap facility until 31 August. The swap window also included $5.3 billion in overseas foreign currency borrowings and $3.9 billion through external commercial borrowings, while commercial banks exchange dollars for rupees at swap rates guaranteed by the RBI.
The scheme, announced on 5 June and launched three days later, let NRIs make leveraged deposits and ran through the end of August. The RBI advanced the FCNR-B closure date to 31 August from 30 September, while swaps against eligible deposits can continue with the central bank until 11 September, it added.
RBI-related commentary in the report said large inflows helped boost rupee liquidity, with economists at HDFC Bank citing a surplus rupee liquidity balance of ₹ 7.76 trillion as of 1 September. They also said the cumulative inflows are likely to offset weaker capital flows seen in the first quarter and help support an overall balance of payments surplus in FY27.