FCNR-B Deposits Cross $65 Billion Ahead of August 31 RBI Deadline

FCNR-B deposits mobilised under the Reserve Bank of India's special USD-INR forex swap facility have crossed $65 billion, according to RBI data reported by Moneycontrol, as banks seek to attract non-resident Indian deposits before the scheme's August 31 deadline. Authorised dealer banks reported $65.397 billion in inflows through Foreign Currency Non-Resident (Bank) deposits as of August 21.

Total forex inflows mobilised under the facility, which also covers External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs), reached $72.848 billion as of the same date. ECBs accounted for $2.591 billion and OFCBs for $4.860 billion, with FCNR-B deposit inflows remaining the dominant contributor to the scheme.

The RBI introduced the special swap facility on June 8, 2026, to encourage stable dollar inflows amid a weakening rupee. The scheme was originally set to remain open for FCNR-B deposits until September 30, but the central bank brought the deadline forward to August 31, citing the "encouraging response" to the facility and the "resultant forex inflows."

"As already announced vide Press Release dated August 14, 2026, the Scheme is open till August 31, 2026 for FCNR(B) deposits, and up to December 31, 2026 for ECBs and OFCBs," the RBI said in a statement. Banks can still execute dollar-rupee swaps with the RBI against eligible FCNR-B deposits until September 11, even after the deposit-raising window closes.

Mobilisation accelerated sharply through August, with FCNR-B inflows under the scheme rising from $36.725 billion as of July 31 to $52.3 billion by August 13. The increase came shortly after RBI Governor Sanjay Malhotra had said on August 5 that there was "no proposal under consideration to close the scheme prematurely."

Private banks have stepped up efforts to attract RBI FCNR-B deposits ahead of the deadline, raising interest rates to draw NRI depositors. Axis Bank, India's third-largest private sector lender, raised the interest rate on FCNR-B deposits above $1 million to 6.40% for a three-to-five-year tenor.

An FCNR-B account allows non-resident Indians to hold fixed deposits in India in freely convertible foreign currencies, protecting depositors' funds against currency fluctuations during the deposit tenure.

The August 31 FCNR-B deadline arrives as India continues to manage broader currency pressures, including recent volatility that has prompted RBI intervention in the rupee. Further information is available through the Reserve Bank of India's official website, and related coverage can be found in a report on the Indian rupee's weekly decline and RBI intervention.