Reserve Bank of India reopens FCNR(B) swap window for NRI deposits

On 5 June 2026 the Reserve Bank of India (RBI) reopened a special FCNR(B) swap window, instructing banks to raise fresh foreign‑currency deposits from non‑resident Indians and to swap the dollars with the central bank. The RBI will bear the hedging cost and the deposits are exempt from cash‑reserve and statutory‑liquidity ratio requirements, allowing banks to offer rates of 6‑7%, up from 3‑4% previously.

The scheme mirrors a similar playbook used in September 2013, when it attracted about $34 billion in NRI deposits and helped stabilise the rupee during the taper‑tantrum. Analysts now forecast inflows anywhere from $20 billion (base case) to $60 billion (optimistic), with some expecting $40‑50 billion by FY27 and a modest rupee appreciation toward the 93‑94 per‑dollar range.

FCNR(B) balances had collapsed by 86% to $946 million in FY26, while total NRI deposits stood at $165.65 billion at the end of March 2026. The deposit window closes on 30 September 2026, with the swap facility remaining open until 16 October 2026. The move is part of a broader package aimed at plugging an estimated $50 billion balance‑of‑payments deficit and defending a rupee that has been sliding against a stronger dollar.