Archive · 28 Jul 2026
Banks to raise $65B in NRI deposits under RBI scheme
Indian banks are raising a lot of money from Non-Resident Indians (NRIs) through a special scheme called FCNR(B) deposits.
This scheme has already brought in a lot of dollars, and it's expected to bring in even more by the end of September 2026.
The money is helping India's economy by strengthening its balance of payments and reducing the current account deficit.
However, there are concerns about the rupee getting weaker despite these strong inflows.
Additionally, the government has approved trials for new polymer currency notes, which are expected to last longer and cost less to replace than paper notes.
Banks in India are raising $65-70 billion in FCNR(B) deposits, exceeding the $26 billion raised in 2013.
The RBI's measures have already brought in nearly $32 billion, with FCNR(B) deposits accounting for most of the inflows.
Public sector banks are leading the mobilisation drive, leveraging relationships with high-value customers.
The inflows are expected to boost India's capital account by $75-85 billion and inward remittances to exceed $150 billion.
The government has approved trials for polymer currency notes of ₹10 and ₹20, which are expected to be more durable.
- Who
- Banks in India, Reserve Bank of India (RBI), Non-Resident Indians (NRIs)
- What
- Raising $65-70 billion in FCNR(B) deposits and introducing polymer currency notes
- When
- Up to September 30, 2026
- Where
- India
- Why
- To strengthen the external sector and balance of payments, and to introduce more durable currency notes
Pros of FCNR(B) Deposits
Cons of FCNR(B) Deposits
Economic Impact
Pros of FCNR(B) Deposits
Strengthens India's external sector and balance of payments.
Cons of FCNR(B) Deposits
Depreciation of the rupee despite strong inflows remains a concern.
- Total FCNR(B) Deposits Raised
- $65-70 billion
- Inflows as of July 23
- $26-28 billion
- Projected Total Inflows
- $80-85 billion
- Expected Capital Account Boost
- $75-85 billion
- Projected Inward Remittances
- $150 billion
- Projected FDI Inflows
- $15-18 billion
- Projected BoP Surplus
- $50 billion
- Current Account Deficit Projection
- 1-1.2% of GDP
- Polymer Currency Notes Trial
- ₹10 and ₹20 notes