India could witness foreign exchange inflows of as much as $85 million following the Reserve Bank of India’s measures aimed at encouraging Foreign Currency Non-Resident (Bank), or FCNR(B), deposits, according to a new report released by SBI Research. The initiative is expected to significantly improve the country’s foreign exchange reserves while strengthening confidence in India’s external financial position.
The report estimates that FCNR(B) deposits alone may contribute between $65 million and $70 million by the time the scheme concludes. If achieved, this would comfortably exceed the amount raised under a similar RBI initiative introduced in 2013, highlighting the strong response from overseas depositors.
Recent data from the Reserve Bank of India indicates that FCNR(B) deposits had already reached approximately $17.41 million as of July 17, 2026. Overall foreign exchange inflows stood at nearly $20.72 million during the same period. These inflows included about $1.97 million through Overseas Foreign Currency Borrowings (OFCBs) and another $1.34 million from External Commercial Borrowings (ECBs). Public sector banks have played a leading role in driving the strong pace of deposit mobilization.
SBI Research noted that continued momentum prompted it to revise its earlier projections upward. The report estimates FCNR(B) deposits climbed to between $26 million and $28 million by July 23, leading analysts to raise their final forecast from $40–45 million to $65–70 million by the end of the program.
The report also expects a large portion of FCNR(B) deposits scheduled to mature during August and September 2026 to be renewed. Higher interest rates are expected to encourage depositors to extend their investments, further supporting the scheme’s success. In addition, around $10 million could be mobilized from countries offering favorable tax benefits.
India’s Foreign Currency Assets have also shown healthy growth, increasing by about $7.60 million between June 8 and July 17. SBI Research expects additional FCA inflows of between $10 million and $12 million during the second half of July, further boosting the country’s reserve position.
According to the report, sustained foreign exchange inflows under the RBI’s initiative are likely to enhance the resilience of India’s external sector, strengthen its forex reserves and reinforce investor confidence in the country’s macroeconomic outlook, providing greater financial stability in the months ahead.
