According to an <a href="https://www.mid-day.com/business/business-news/article/sbi-chairman-no-plans-to-reduce-stake-in-sbi-funds-management-post-listing-23640870" target="_blank" rel="none noopener">SBI</a> Research report, India may receive FCNR (B) deposits in the range of USD 65-70 billion by the end of the RBI scheme on September 30, and overall USD 80-85 billion, as reported by news agency IANS.
"We now estimate that FCNR (B) since then has already crossed 2013 level of USD 26 billion in just 45 days," said Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.
The RBI data indicates that FCNR (B) deposits worth USD 17.4 billion have been mobilised till July 17, 2026 and trend suggests that PSBs are major drivers of this mobilisation, and the USD 20 billion inflows (till July 17) came as a positive reprieve, largely due to smart FCNR (B) corpus of USD 17.4 billion, as per IANS.
"We also believe that significant majority of existing FCNR deposits which are going to mature in August/September 2026 will be renewed under the new scheme (gravitated by higher interest rates) and will boost the FCNR (B) inflows," the SBI report mentioned.&nbsp;
As per IANS, initial estimate indicate that amount worth USD 10 billion on a conservative basis in addition to base line estimates are going to be mobilised mostly through those economies where tax concessions are available.
"Nevertheless, given the current trend we believe that total amount mobilised so far in 45 days has easily crossed the total amount mobilised in 2013 in three months," the SBI Research report noted.
<h2>What is FCNR (B)?</h2>
Foreign Currency Non-Resident (Bank) or FCNR (B) deposits is a fixed-term deposit account that allows non-resident Indians (NRIs), persons of Indian origin, or overseas citizens of India to maintain a fixed deposit in specified foreign currencies. The funds and the interest on these deposits is exempted from tax in India. The RBI permits these deposits to encourage foreign currency inflows that helps to safeguard the <a href="https://www.mid-day.com/business/business-news/article/rupee-rises-28-paise-to-9625-against-us-dollar-as-crude-oil-prices-ease-23641780" target="_blank" rel="none noopener">rupee</a> against depreciation and to strengthen India's foreign exchange reserves.
<h2>RBI's scheme</h2>
The <a href="https://www.mid-day.com/business/business-news/article/rbi-monetary-policy-meeting-growth-outlook-at-6-6-per-cent-rbi-governor-warns-of-supply-chain-disruptions-23633764" target="_blank" rel="none noopener">Reserve Bank of India</a> had launched the concessional FCNR swap window as part of broader steps to encourage capital inflows to boost India's balance of payments during global uncertainty. Under this facility, banks can mobilise new FCNR-B deposits and exchange the dollars with the RBI at a lower, concessional rate, as per a PTI report.
The facility that was implemented on June 8, 2026, and is available up to September 30, 2026, for the FCNR (B) deposits and up to December 31, 2026, for the Overseas Foreign Currency Borrowings and External Commercial Borrowings, as per PTI report.
"Rupee has moved 360 degrees; from being a shock absorber to not being a shock absorber. It is therefore important to not let the Rupee travel 360 degrees again but ensure its implied resilience to checkmate exogenous shocks without losing competitiveness," the SBI Research report said.&nbsp;
(With agency inputs)

Given the trend at present, the total amount garnered so far in 45 days has easily crossed the total amount mobilised in 2013 in three months

FCNR (B) deposits likely to touch USD 85 billion: SBI report

Gold, silver futures gain up to 1 per cent on weaker dollar, easing crude oil prices

Given the current trend, the total amount mobilised so far in 45 days has easily crossed the total amount mobilised in 2013 in three months

India may receive FCNR (B) deposits up to USD 85 billion: SBI report

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Home / Business / Business News / Article / India may receive FCNR (B) deposits up to USD 85 billion: SBI report