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RBI expects healthy balance-of-payments surplus in FY27
The Reserve Bank of India is the country's main bank, kind of like a grown-up piggy bank manager.
In June it made new rules to encourage people from India living abroad to put their foreign money into Indian banks.
These special savings plans are called FCNR deposits, and the RBI helps protect them from currency risk.
The plan worked very well — in just 53 days, India received over $40 billion from outside.
Now the RBI expects more money to flow into India than out of it this year, which is called a balance of payments surplus.
That is good because it helps keep the Indian rupee strong and steady.
A strong rupee makes it easier for businesses to buy things from other countries.
The RBI now thinks the surplus will be about $40 billion, which is more than was expected before.
There are still some worries, like expensive energy and trade problems around the world, but new trade deals may help.
Overall, the RBI says India's money situation is doing well.
RBI Governor Sanjay Malhotra said India's balance of payments is expected to register a healthy surplus in FY27 as June capital-flow measures pay off.
India mobilized $40.8 billion in capital inflows in just 53 days, with FCNR(B) deposits accounting for 90% of the total.
The FY27 BoP surplus is estimated at $40 billion, revised up from an earlier $25 billion estimate, with the current account deficit at 1.7% of GDP.
Gross FDI inflows rose to $30.7 billion in April–June 2026 from $26.7 billion a year earlier, while FPI flows turned positive with $7.1 billion in net inflows during June–July.
Malhotra cautioned that slower global trade growth, energy price surges, and trade policy uncertainty pose upside risks to the current account deficit in 2026-27.
- Who
- Reserve Bank of India (RBI) Governor Sanjay Malhotra, speaking at the central bank's bi-monthly monetary policy announcement.
- What
- The RBI said India's balance of payments is expected to register a healthy surplus in FY27, boosted by June measures to attract foreign capital including relaxed FCNR(B) deposit norms.
- Where
- India; announced by the RBI in Mumbai.
- When
- Wednesday, 5 August 2026, following capital-attraction measures announced on 5 June 2026.
- Why
- To shore up foreign exchange inflows and support the rupee amid global trade uncertainty and financial market volatility.
Key facts
- BoP surplus estimate (FY27)
- $40 billion, revised up from $25 billion
- Capital inflows mobilized
- $40.8 billion in 53 days
- FCNR(B) share of inflows
- 90%
- Current account deficit estimate
- 1.7% of GDP (FY27)
- Gross FDI inflows (Apr–Jun 2026)
- $30.7 billion, up from $26.7 billion a year earlier
- FPI net inflows (Jun–Jul)
- $7.1 billion, primarily into debt
- FX reserves import cover
- More than 10 months
- FX reserves external debt cover
- 90.8%
Quotes
Sanjay Malhotra
Governor of the Reserve Bank of India
“Despite the challenging and turbulent global macroeconomic environment, India’s current account deficit in 2025-26 remained modest and much below the levels considered to be sustainable for emerging markets.”
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“Capital flow measures undertaken in June have supported inflows. As a result, the balance of payments is expected to register a healthy surplus this year.”
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