Archive · 20 Jul 2026
RBI's Forex Window Draws $20 Billion Inflows
The Reserve Bank of India (RBI) opened a special window for foreign exchange inflows, and banks have raised over $20 billion through various deposit schemes.
This money is coming from non-resident Indians and other foreign sources.
The RBI is offering special benefits, like covering the hedging cost, to attract these deposits.
Banks are also offering high interest rates and leverage schemes to encourage more deposits.
While this is good news for the Indian rupee, high oil prices and a strong US dollar are still putting pressure on the currency.
Experts believe that if oil prices cool down, the rupee could strengthen further.
Banks have raised $17.41 billion through FCNR(B) deposits under RBI's special swap scheme.
Total foreign exchange inflows through FCNR(B), ECBs, and OFCBs reached $20.72 billion by July 17.
The RBI is covering the hedging cost for fresh US dollar deposits, enabling banks to offer better rates to depositors.
Interest rates on FCNR(B) deposits range from 6% to 7.8% at different banks.
Market participants estimate total inflows could reach $80 billion, but high oil prices and a strong US dollar continue to pressure the rupee.
- Who
- Reserve Bank of India (RBI) and banks
- What
- Foreign exchange inflows through FCNR(B) deposits, ECBs, and OFCBs
- When
- Since June 8, with the scheme operational until September 30 for FCNR(B) deposits and December 31 for OFCBs and ECBs
- Where
- India
- Why
- To bolster India's balance of payments and support the rupee
Optimistic View
Cautious View
Inflow Projections
Optimistic View
Market participants estimate total inflows could reach $80 billion, providing strong support for the rupee.
Cautious View
Despite strong inflows, elevated crude oil prices and a strong US dollar continue to pressure the rupee.
- Total Inflows
- $20.72 billion
- FCNR(B) Deposits
- $17.41 billion
- OFCBs
- $1.97 billion
- ECBs
- $1.34 billion
- Scheme Duration
- FCNR(B) deposits until September 30, OFCBs and ECBs until December 31
- Interest Rates on FCNR(B) Deposits
- 6% to 7.8%
- Rupee Exchange Rate
- Around 96.45