FCNR (B) deposits cross 2013 levels in 45 days, may hit $85 billion: SBI Research
Synopsis
India's FCNR (B) deposit drive has already outpaced the entire 2013 mobilisation in just 45 days, according to SBI Research — which now sees total inflows hitting $80–85 billion by September. Yet the rupee keeps weakening despite the surge, exposing a disconnect between capital inflows and currency stability that markets have yet to resolve.
Key Takeaways
FCNR (B) deposits have reportedly crossed the 2013 peak of $26 billion in just 45 days , per SBI Research .
RBI data shows $17.4 billion in FCNR (B) inflows mobilised until 17 July 2026 , as part of $20 billion in total capital inflows.
Total FCNR (B) inflows projected at $65–70 billion by 30 September 2026 ; overall inflows may reach $80–85 billion .
An additional $10 billion (conservative estimate) is expected from economies offering tax concessions.
Public Sector Banks are the primary drivers, using a blended Onshore-Offshore mobilisation strategy.
Despite strong inflows, the Indian rupee has continued to weaken, with RBI forex intervention described as 'sporadic' since West Asia tensions escalated.
India's Foreign Currency Non-Resident [Bank] — FCNR (B) deposits may have already surpassed the 2013 peak of $26 billion in just 45 days, according to an SBI Research report released on Monday, 27 July 2026. The report projects total FCNR (B) inflows of $65–70 billion by the time the Reserve Bank of India (RBI) scheme closes on 30 September 2026, with overall inflows potentially reaching $80–85 billion.
Key Developments
RBI data shows that FCNR (B) deposits worth $17.4 billion had been mobilised until 17 July 2026, contributing to total capital inflows of $20 billion by that date. Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at SBI, said in the report: 'We now estimate that FCNR (B) since then has already crossed 2013 level of $26 billion in just 45 days.'
Notably, it took three months to mobilise an equivalent sum during the 2013 FCNR (B) drive — making the current pace of accumulation significantly faster, according to the report.
What Is Driving the Surge
Public Sector Banks (PSBs), led by larger institutions, are identified as the primary engines of this mobilisation. The SBI report notes that these banks are leveraging an 'Onshore-Offshore' strategy — blending domestic and international deposit channels — while drawing on established relationships with creditworthy NRI clients across multiple geographies.
The report also projects that a substantial portion of existing FCNR deposits maturing in August and September 2026 will be renewed under the new scheme, attracted by higher interest rates. An additional $10 billion — on a conservative estimate — is expected to flow in primarily from economies where tax concessions are available.
The Rupee Question
Despite the strong inflows, the Indian rupee has continued to weaken, a contradiction that broader markets are still grappling with. The SBI report attributes this partly to the RBI's approach to foreign exchange intervention, which it describes as 'sporadic and not full throttled' since geopolitical disturbances broke out in West Asia.
The report uses pointed language on the currency: 'Rupee has moved 360 degrees; from being a shock absorber to not being a shock absorber. It is therefore important to not let the Rupee travel 360 degrees again but ensure its implied resilience to checkmate exogenous shocks without losing competitiveness.'
Broader Context and Risks
The SBI Research note flags that the disconnect between capital inflows and the rupee's performance remains a concern for markets, particularly given ongoing frictions in global trade, supply chain disruptions, geopolitical risks, and skewed capital flows. The correlation between FCNR (B) inflows and India's Foreign Currency Assets (FCA) position is also under scrutiny, with analysts watching whether the RBI will step up its market presence ahead of the scheme's September deadline.
Point of View
Or that outflows elsewhere are neutralising the gains — neither of which the SBI report fully resolves. The 'sporadic' characterisation of RBI's forex intervention is a pointed critique that deserves more official response than it has received.
NationPress
27 Jul 2026
Frequently Asked Questions
What are FCNR (B) deposits and why do they matter?
FCNR (B) — Foreign Currency Non-Resident (Bank) — deposits are fixed-term foreign currency accounts held by non-resident Indians (NRIs) in Indian banks. They matter because large-scale mobilisation of these deposits brings in hard currency, bolsters India's foreign exchange reserves, and helps stabilise the rupee during periods of external pressure.
How do the 2026 FCNR (B) inflows compare to 2013?
According to SBI Research, the 2026 drive has already crossed the 2013 total of $26 billion in just 45 days — a feat that took three months in 2013. Total inflows for 2026 are projected at $65–70 billion under the RBI scheme alone, with overall inflows potentially reaching $80–85 billion.
Why is the rupee still weakening despite strong FCNR (B) inflows?
SBI Research notes that the RBI's intervention in the foreign exchange market has been 'sporadic and not full throttled' since geopolitical tensions in West Asia escalated, which has limited the currency-stabilising effect of the inflows. The exact correlation between FCNR (B) flows and India's Foreign Currency Assets position remains a subject of market debate.
When does the RBI's FCNR (B) scheme end?
The RBI's current FCNR (B) mobilisation scheme is set to close on 30 September 2026. SBI Research expects a significant portion of maturing FCNR deposits in August and September to be renewed under the scheme, attracted by higher interest rates.
Which banks are leading the FCNR (B) mobilisation drive?
Public Sector Banks, particularly the larger ones, are identified by SBI Research as the primary drivers of the current FCNR (B) surge. They are leveraging a blended Onshore-Offshore strategy and long-standing relationships with creditworthy NRI clients across multiple geographies.
