Mumbai, India | July 28, 2026
FCNR Scheme 2026
The Reserve Bank of India’s (RBI) FCNR (B) Scheme has received a stronger-than-expected response, with SBI Research estimating that the initiative could attract $80–85 billion (approximately ₹7.1 lakh crore) in foreign currency inflows into India.
According to the latest research report, banks have mobilized record levels of deposits within just 45 days, surpassing the amount raised during the 2013 FCNR drive, which took nearly three months.
45-Day Fund Mobilization Surpasses 2013 Benchmark
SBI Research said the current FCNR (B) Scheme has exceeded expectations, prompting it to revise its earlier forecast.
The research firm has increased its projected inflows from the earlier estimate of $40–45 billion to $80–85 billion, reflecting robust participation by overseas depositors.
The FCNR (B) Scheme will remain open until September 30, 2026.
How Much Investment Is Expected by the End of the Scheme?
According to the report, FCNR deposits alone are expected to contribute $65–70 billion by the time the scheme closes.
In addition, a substantial portion of existing FCNR deposits maturing during August and September 2026 is expected to be reinvested under the current scheme, supported by relatively attractive interest rates.
Sources of Foreign Currency Inflows So Far
Data available up to July 17 indicate that public sector banks have accounted for the largest share of funds mobilized.
The reported inflows include:
- External Commercial Borrowings (ECBs): $1.34 billion
- Foreign Currency Borrowings: $1.97 billion
These channels have supplemented FCNR deposits in strengthening India’s foreign currency inflows.
RBI Governor Highlights Strong Early Response
RBI Governor Sanjay Malhotra said that measures announced in June 2026 to attract foreign currency have already brought approximately $32 billion into India.
He also noted that, following tax-related incentives, foreign portfolio investors (FPIs) have invested nearly $7 billion in Indian debt securities.
The RBI introduced these measures to improve foreign currency liquidity and support India’s external financing position.
Why the FCNR Scheme Matters
Foreign Currency Non-Resident (Bank), or FCNR (B), deposits allow Non-Resident Indians (NRIs) to maintain fixed deposits in designated foreign currencies with Indian banks.
Higher inflows through the scheme can:
- Strengthen India’s foreign exchange reserves.
- Improve foreign currency liquidity.
- Support financial market stability.
- Enhance the country’s external financing position.
Key Highlights
- SBI Research estimates the FCNR (B) Scheme could attract $80–85 billion (around ₹7.1 lakh crore).
- Banks have reportedly surpassed the 2013 FCNR mobilization record within 45 days.
- FCNR deposits alone are expected to contribute $65–70 billion.
- The scheme remains open until September 30, 2026.
- RBI Governor Sanjay Malhotra said $32 billion has already entered India under measures announced in June.
- Foreign investors have also invested nearly $7 billion in Indian debt securities following tax-related incentives.
Reference Sources
- Reserve Bank of India (RBI)
- SBI Research Report
- RBI Governor Sanjay Malhotra’s official remarks
