The Reserve Bank of India's (RBI) special forex window could attract up to $85 billion in foreign currency inflows by the end of September 2026. According to SBI Research, Foreign Currency Non-Resident (Bank) deposits are projected to reach between $65 billion and $70 billion by the window's closure on September 30, 2026. This special facility, which began on June 8, 2026, aims to enhance India's balance of payments and draw foreign capital.
Key Details
As of July 23, 2026, the mobilization of FCNR(B) deposits had already reached approximately $26 billion, surpassing the $26 billion collected during a similar initiative in 2013, which took nearly three months to achieve. The RBI's measures also include overseas foreign currency borrowings (OFCBs) and external commercial borrowings (ECBs), which are eligible for mobilization until December 31, 2026.
RBI Governor Sanjay Malhotra noted that banks have successfully mobilized nearly $32 billion through these measures, with a significant portion coming from FCNR(B) deposits. He also mentioned that foreign investors have invested over $7 billion into government securities since the program's inception. Malhotra indicated that the Indian rupee is currently undervalued, which may further incentivize foreign investment.
Background
Public sector banks are reportedly leading the mobilization efforts, utilizing established relationships with international clients. SBI Research anticipates that many FCNR(B) deposits maturing in August and September 2026 will be renewed at higher interest rates, potentially adding around $10 billion to existing estimates.
The influx of foreign currency deposits could strengthen the Indian rupee and enhance liquidity in the banking sector, benefiting government securities and other fixed-income assets.
Investors will watch for updates on the total amount mobilized by the RBI's special measures as the September deadline approaches.