Archive · 27 Jul 2026
FCNR(B) Deposits Surpass 2013 Peak in 45 Days
FCNR(B) deposits, which are foreign currency deposits made by non-residents in Indian banks, have reached a new high in just 45 days.
This is more than what was collected in the entire three months of 2013.
The Reserve Bank of India (RBI) introduced a special scheme in June to encourage these deposits.
SBI Research estimates that by the end of the scheme, these deposits could reach $65-70 billion.
However, despite these large inflows, the Indian rupee has been getting weaker.
This is because of problems like geopolitical tensions and high oil prices.
SBI Research suggests that the RBI needs to intervene more strongly in the foreign exchange market to stabilize the rupee.
FCNR(B) deposits have crossed $26 billion in 45 days, surpassing the 2013 peak.
SBI Research expects total FCNR(B) mobilization to reach $65-70 billion by the end of the scheme.
Rupee has depreciated by 12.5% since April 1, 2025, despite strong capital inflows.
RBI's intervention in the foreign exchange market has been relatively limited, averaging $14 million per day.
Larger RBI interventions have been more effective in stabilizing the rupee compared to smaller actions.
- Who
- SBI Research
- What
- FCNR(B) deposits have surpassed the 2013 peak in just 45 days
- When
- As of July 27, 2026
- Where
- India
- Why
- Due to RBI's concessional swap scheme and higher interest rates
RBI Intervention Strategy
Market Sentiment and Rupee Depreciation
Effectiveness of RBI Interventions
RBI Intervention Strategy
SBI Research suggests that larger interventions by the RBI are more effective in stabilizing the rupee, citing examples where significant interventions led to temporary appreciation.
Market Sentiment and Rupee Depreciation
Despite strong capital inflows, the rupee has continued to depreciate due to geopolitical tensions, volatile crude oil prices, and cautious foreign portfolio investors.
- FCNR(B) Deposits
- $26 billion (as of July 2026)
- Total Inflows (as of July 17, 2026)
- $20.72 billion
- FCNR(B) Deposits (as of July 17, 2026)
- $17.41 billion
- OFCBs (as of July 17, 2026)
- $1.97 billion
- ECBs (as of July 17, 2026)
- $1.34 billion
- Expected FCNR(B) Mobilisation
- $65-70 billion by end of scheme
- Rupee Depreciation (since April 1, 2025)
- 12.5%
- Average RBI Intervention (as of July 2026)
- $14 million per day
