Archive · 28 Jul 2026
RBI's Forex Schemes Attract $32 Billion
The Reserve Bank of India (RBI) has announced that banks have collected about $32 billion through special schemes for foreign currency deposits and borrowing.
Most of this money came from a specific type of deposit called FCNR B deposits.
Additionally, about $7 billion came from investments in debt securities.
The RBI governor, Sanjay Malhotra, said this money will help India's balance of payments and make the country more financially stable.
He also mentioned that the Indian rupee is not overvalued and might even be undervalued.
He pointed to a surplus in the current account, strong exports, and good investment flows as signs of a strong economy.
Banks have mobilised $32 billion under RBI's special foreign currency schemes.
Majority of funds came from FCNR B deposits.
Additional $7 billion from foreign portfolio investments into debt securities.
RBI governor asserts the rupee is not overvalued and could be undervalued.
Strong economic indicators include current account surplus, robust services exports, and resilient remittance inflows.
- Who
- Reserve Bank of India (RBI) Governor Sanjay Malhotra
- What
- Banks mobilised $32 billion under RBI's special foreign currency schemes
- When
- Schemes announced in June, interview published on Monday
- Where
- Mumbai
- Why
- To strengthen India's balance of payments and improve external resilience
Economic Strength Perspective
Currency Valuation Debate
Economic Resilience
Economic Strength Perspective
The RBI governor highlights strong indicators like current account surplus, robust services exports, and resilient remittance inflows as signs of economic strength.
Currency Valuation Debate
Some economists may argue that these indicators alone do not guarantee long-term economic stability.
Currency Valuation
Economic Strength Perspective
The RBI governor asserts that the rupee is not overvalued and could be considered undervalued.
Currency Valuation Debate
Market analysts might disagree, citing different metrics or market sentiments that suggest the rupee is overvalued.
- Total Amount Mobilised
- $32 billion
- Source of Majority Funds
- FCNR B deposits
- Additional Funds from Debt Securities
- $7 billion
- Current Account Status
- Surplus during April-May
- RBI Governor
- Sanjay Malhotra
- Schemes Announced
- June
- Currency Valuation
- Not overvalued, possibly undervalued