The RBI's concessional foreign exchange swap facility has attracted $40.816 billion in overseas currency inflows since June. FCNR (B) deposits account for most of the mobilisation, while SBI Research expects total inflows under the scheme to rise significantly before it closes
Banks remain confident that FCNR-B deposit mobilisation will gather pace before the RBI's September 30 deadline despite a slow start. Lenders are strengthening overseas partnerships and outreach to NRIs, while analysts expect inflows to remain below earlier market expectations
The RBI has temporarily relaxed interest rate restrictions on select FCNR(B) and NRE deposits, allowing banks to offer higher returns to non-resident Indians. The move aims to attract overseas funds, strengthen foreign exchange reserves and support the rupee
