1 month ago
India's FCNR Scheme Attracts $17.41 Billion in 42 Days
India has a special program where people living outside India can deposit money in Indian banks.
This program started on 5 June 2026 and has already collected $17.41 billion in just 42 days.
The program offers good interest rates and is meant to help India's economy by bringing in more foreign money.
Some people think this program will bring in even more money, especially in the next few months.
However, there are concerns that not all NRIs, especially those in the US, will participate due to tax issues.
The program will continue until the end of September 2026.
Non-resident Indians (NRIs) have deposited $17.41 billion into Indian banks through FCNR deposits in 42 days.
The scheme offers up to 14% return on investment and runs until 30 September 2026.
The Reserve Bank of India (RBI) has received a total of $20.72 billion through its dollar swap facility.
Banks are selectively choosing deposits from NRIs with over $1 million, which may limit overall inflows.
The scheme aims to strengthen the rupee and attract dollars amid global uncertainties.
- Who
- Non-resident Indians (NRIs)
- What
- Deposited $17.41 billion into Indian banks through FCNR deposits
- Where
- India
- When
- Between 5 June and 17 July 2026
- Why
- To strengthen the rupee and attract dollars
Optimistic View
Cautious View
Inflow Expectations
Optimistic View
The scheme has seen a very healthy start with potential for higher inflows, especially in August and September.
Cautious View
Banks are selectively choosing deposits from NRIs with over $1 million, which may undermine the goal of attracting $30-40 billion in inflows.
NRIs from the US
Optimistic View
The scheme has attracted significant interest and steady forex inflows since its launch.
Cautious View
Domestic banks do not expect significant FCNR-B deposit inflows from the US due to stricter tax scrutiny and compliance challenges.
Key facts
- Total FCNR-B Deposits
- $17.41 billion
- Total Dollar Swap Facility
- $20.72 billion
- Scheme Launch Date
- 5 June 2026
- Scheme End Date
- 30 September 2026
- Potential Return on Investment
- Up to 14%
- Expected FY27 BoP Surplus
- $25 billion
- Punjab National Bank Target
- $2.5 billion
- Punjab National Bank Current Inflows
- $425 million
Quotes
Gaura Sengupta
Chief economist at IDFC First Bank
“Given the pace, there could be upside risk to our estimate of overall FCNR-B inflows of $50 billion due to the scheme.”
livemint.com
“This is an excellent indication of what kind of funds could flow in under the scheme.”
livemint.com
Sources
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