“Given the current trend we believe that total amount mobilized so far in 45 days has easily crossed the total amount mobilized in 2013 in 3 months! Overall, we believe, India may now receive FCNR (B) deposits in the range of USD 65-70 billion by the end of the scheme and overall USD 80-USD 85 bn,” the SBI Research report stated.
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The report noted that public sector banks served as the primary drivers of this mobilization. Citing data from the Reserve Bank of India, the report noted that FCNR(B) deposits worth USD 17.41 billion were mobilized till July 17, 2026.
The total deposit inflows reached USD 20.72 billion till July 17, which included USD 1.97 billion from Overseas Foreign Currency Borrowings (OFCBs) and USD 1.34 billion from External Commercial Borrowings (ECBs).
The report mentioned that total FCNR deposits were expected to reach USD 26-28 billion by July 23 alone. SBI Research revised its total FCNR forecast at the end of the scheme upward to USD 65-70 billion from an earlier estimate of USD 40-45 billion.
“We also believe that significant majority of existing FCNR deposits which are going to mature in Aug/ Sep’26 will be renewed under the new scheme (gravitated by higher interest rates) and will boost the FCNR (B) inflows,” the report added.”Our preliminary estimate indicate that amount worth USD 10 billion on a conservative basis in addition to base line estimates are going to be mobilized mostly through those economies where tax concessions are available,” the report said.
Foreign Currency Assets (FCA) increased by USD 7.6 billion from June 8 till July 17. Meanwhile, deposit mobilization recorded USD 17.4 billion for FCNR(B) flows, possibly reflecting that the exchange process at the RBI by the banks was happening gradually, accounting for roughly 44 per cent of the total amount.
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“The next reporting for FCA for July is for week ended July 24 and week ended July 31 and we expect for the next 15 days period (17 Jul-31 Jul) FCA inflows could touch USD 10-12 billion based on current trends,” the report said.
“This should make most of the overall FCA accruals/growth (till July end) of USD 17-20 billion post the RBI measures accounted for in RBI reserve data buoyed primarily by FCNR (B) inflows,” the report stated.