FCNR(B) deposit collections surge, touching $65.3 billion ahead of August 31 deadline
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The Reserve Bank of India (RBI), on Saturday, disclosed that forex inflows through the foreign currency non-resident (Bank) [FCNR(B)] route have touched $65.3 billion as of August 21, 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 $72.84 billion.
The central bank reiterated in this latest circular that the FCNR(B) scheme is open till August 31 for deposits, and up to December 31, 2026 for ECBs and OFCBs.
On August 14, in a surprise decision, RBI advanced the closing of the concessional swap facility available linked to FCNR(B) deposits, by a month. The central bank at that time called the collections an “encouraging response”. The zero-cost swap facility deadline was advanced to September 11 from October 16, 2026.
This sudden move has irked bankers and market participants, which caused the RBI Governor Sanjay Malhotra to clarify the central bank’s stand in an interview to local financial newspaper on August 20, in taking the decision.
“It will not be correct to call it a U-turn; it is rather a calibration,” Malhotra had said in the interview. The move demonstrated the central bank’s ability to remain flexible and data-dependent amid rapidly changing conditions, he added.
Initially in June, banks and economists were reluctant to peg how much could finally be raised when the schemes close.
But the collection of $65.3 billion will be definitely seen as impressive,
The FCNR(B) scheme announced on June 5 and made operational on June 8, was an effort from banks to draw dollars, in the form of deposits, from non-resident Indians. The move has been seen to strengthen India's balance of payments and incentivise capital inflows, particularly as foreign funds have been net sellers of Indian equities in 2026.
But the foreign funds buying has been improving in August. In July FIIs were net sellers of Indian equities worth Rs 5,778 crore in July 2026, compared to net sales of Rs 49,028 crore in June. FIIs have bought Indian equities worth Rs 16,621 crore, during the first half of August.
The easing of geo-political tensions and some improvement in foreign capital inflows into equities has eased the pressure of volatility on the rupee. It has started to stabilise between 95-96 against the dollar between July to mid-August.