Archive · 3 Aug 2026
Rupee Stagnates Despite $49B FCNR(B) Deposit Inflows in 2024
India got a lot of money from foreign investors in June and July.
They put the money in special bank accounts called FCNR(B) deposits.
The money should have made the Indian rupee stronger, but it didn’t.
That’s because the money didn’t go straight into the market where the rupee is traded.
The central bank also sold dollars in a different market to keep the rupee from falling.
Even though more people might put money in the future, experts think the rupee will stay about the same by 2026‑27.
India received $49B in FCNR(B) deposits, foreign loans, and bond investments over June-July 2024.
The rupee barely strengthened, closing at 95.39 per dollar, only 0.4% stronger than pre‑announcement levels.
FCNR(B) swap scheme does not directly increase market dollar supply, limiting its impact on the exchange rate.
RBI’s foreign currency asset holdings rose only $7B, lagging behind the $17B of new deposits due to operational delays and forward market sales.
Analysts predict NRIs could add up to $75B by the scheme’s end, yet the rupee is expected to remain near 96 per dollar by 2026‑27.
- Who
- Indian banks, the Reserve Bank of India, NRIs, and economists
- What
- $49B in foreign inflows via FCNR(B) deposits, loans, and bond investments
- When
- June and July 2024
- Where
- India and the global foreign exchange market
- Why
- The scheme aimed to attract capital but limited impact due to operational delays, forward market sales, and global risks
- Foreign inflows (June-July 2024)
- $49B
- Rupee exchange rate (closing Friday)
- 95.39 per dollar
- FCNR(B) deposits received
- $17B
- RBI FCA increase
- $7B
- Projected NRI inflow by scheme end
- $75B
- Expected rupee level 2026-27
- around 96 per dollar