Archive · 21 Jul 2026
India Raises $17.4 Billion via FCNR(B) Deposits
India has raised $17.4 billion through a special bank deposit scheme for Non-Resident Indians (NRIs).
This scheme, called FCNR(B), offers good interest rates and is part of efforts to bring more foreign money into the country.
The Reserve Bank of India (RBI) introduced this scheme to help balance India's payments with other countries.
While public sector banks are hopeful that more deposits will come in before the deadline, private banks like HDFC Bank think the actual amount might be less than expected.
This is because some NRIs, especially those not in the Middle East or Singapore, find the tax rules on these deposits unfair.
Additionally, banks in the Middle East are being careful with lending due to political tensions, which also affects how much money can be raised.
India has raised $17.4 billion through FCNR(B) deposits as of July 17, 2026.
Total foreign currency inflows, including OFCB and ECB, reached $20.7 billion.
The RBI's concessional swap facility offers attractive returns of 17-27% annually for NRIs.
Public sector banks are optimistic about meeting their FCNR(B) deposit targets by the September 30 deadline.
Private banks like HDFC Bank expect lower inflows due to tax rules and liquidity constraints in the Middle East.
- Who
- Reserve Bank of India (RBI), Public and Private Sector Banks, Non-Resident Indians (NRIs)
- What
- Raising of $17.4 billion through FCNR(B) deposits and other foreign currency inflows
- When
- As of July 17, 2026, with facilities operational since June 8, 2026
- Where
- India
- Why
- To strengthen balance of payments and incentivize capital inflows
Public Sector Banks
Private Banks
Inflow Expectations
Public Sector Banks
Public sector banks are confident that FCNR-B deposit mobilization will accelerate before the September 30 deadline.
Private Banks
Private banks, like HDFC Bank, predict that inflows will fall short of initial expectations due to tax rules and liquidity constraints.
- Total FCNR(B) Deposits
- $17.4 billion
- Total OFCB Inflows
- $1.97 billion
- Total ECB Inflows
- $1.34 billion
- Total Foreign Currency Inflows
- $20.7 billion
- FCNR(B) Deposit Return
- 17-27% annually over 3-5 years
- FCNR(B) Facility Deadline
- September 30, 2026
- OFCB and ECB Facility Deadline
- December 31, 2026
- HDFC Bank's Inflow Forecast
- $50-55 billion (revised from $60-80 billion)