Around $17.4 billion raised through FCNR(B) deposits: RBI data

The Reserve Bank of India (RBI), on Monday, disclosed that forex inflows through the foreign currency non-resident (Bank) [FCNR(B)] route have touched $17.4 billion as of July 17, based on data received from authorised dealer banks.

Combined with overseas foreign currency borrowings (OFCB) and external commercial borrowings (ECBs), the total figure rises to $20.71 billion.

The RBI had announced a series of measures to strengthen India's balance of payments and incentivise capital inflows, particularly as foreign funds have been net sellers of Indian equities worth $20.46 billion in calendar year 2026.

The RBI measures included offering concessional swaps for fresh FCNR(B) deposits, OFCB and ECB inflows in June. This facility is available until September 30, 2026, for FCNR(B) deposits and until December 31, 2026, for OFCBs and ECBs.

Banks and economists have been reluctant to peg how much banks could finally raise when the schemes close in September.

"Even in 2013-14, when a similar scheme was announced, the pace picked up in the second month, as the first month went into seeking approvals and documentation," said HDFC Bank Managing Director and CEO Sashidhar Jagdishan, during an interaction with analysts after the bank announced its June quarter earnings.

"We do expect that by August and September we could see a gutsy endeavour to ensure that we get a significant market share of such deposits," Jagdishan said. However, he added that he does not want to "commit to any number" when repeatedly asked by analysts about the demand for such deposits.

Kotak Mahindra Bank managing director and CEO Ashok Vaswani, responding to analysts after the bank's Q1FY27 earnings, said: "We are excited about this opportunity. There is customer demand from non-resident Indians. We have to see what kind of mix we get in terms of three- or five-year funds. But the start has been encouraging."

"There should be a clearer picture emerging next month," Vaswani added.

Economists linked with some private sector banks said it is still very difficult to assess how much capital will come in.

"These sums are lumpy and might come in one go," an economist with a private lender told Fortune India, declining to be named.

Another economist said banks have sought intervention from the government and the RBI following media reports that the Central Bank of the UAE had barred representative offices from business facilitation, cross-selling and deposit documentation activities, while trying to promote alternative outreach through GIFT City.