India may receive up to US$ 85 billion in forex inflows following RBI's FCNR move: SBI Research report
- IBEF
- July 28, 2026
India could attract overall foreign exchange inflows of Rs. 7.68-8.15 lakh crore (US$ 80-85 billion) following the Reserve Bank of India's (RBI) measures to encourage Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, according to an SBI Research report. The report estimates that FCNR(B) deposits alone could reach Rs. 6.24-6.72 lakh crore (US$ 65-70 billion) by the end of the scheme, significantly exceeding the mobilisation achieved under a similar initiative in 2013. Data from the RBI showed that FCNR(B) deposits worth Rs. 1.67 lakh crore (US$ 17.41 billion) had been mobilised until July 17, 2026. Total inflows reached Rs. 1.99 lakh crore (US$ 20.72 billion), including Rs. 18,900.18 crore (US$ 1.97 billion) through Overseas Foreign Currency Borrowings (OFCBs) and Rs. 12,855.96 crore (US$ 1.34 billion) via External Commercial Borrowings (ECBs). Public sector banks have emerged as the primary contributors to the strong deposit mobilisation.
According to SBI Research, FCNR(B) deposits were expected to increase further to Rs. 2.49-2.69 lakh crore (US$ 26-28 billion) by July 23, prompting an upward revision in its forecast from Rs. 3.84-4.32 lakh crore (US$ 40-45 billion) to Rs. 6.24-6.72 lakh crore (US$ 65-70 billion) by the end of the scheme. The report also expects a substantial share of FCNR(B) deposits maturing during August and September 2026 to be renewed, supported by higher interest rates. Additionally, around Rs. 95,940 crore (US$ 10 billion) could be mobilised from economies offering tax concessions. Foreign Currency Assets (FCA) increased by Rs. 72,914.40 crore (US$ 7.60 billion) between June 8 and July 17, while FCA inflows are projected to reach Rs. 95,940-1,15,128 crore (US$ 10-12 billion) during the second half of July. The sustained inflows are expected to strengthen India's foreign exchange reserves, enhance external sector resilience and reinforce investor confidence in the country's macroeconomic fundamentals.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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