Overview
- By mid-July, Indian banks had mobilised about $10 billion under the RBI's special FCNR(B) window, well below many market projections.
- The scheme lets non‑resident Indians place three‑ to five‑year dollar deposits while the RBI offers a concessional USD‑INR swap to hedge banks' principal exposure.
- Divergent bank and analyst forecasts range from roughly $20–25 billion up to $60–70 billion in total inflows, leaving outcomes highly uncertain.
- Officials including Finance Minister Nirmala Sitharaman and RBI Governor Sanjay Malhotra have met bank chiefs to press for faster NRI outreach and new deposit propositions.
- Key risks include narrower interest‑rate spreads versus US yields and a tenor mismatch because depositors can often exit earlier than the RBI swap can be unwound, which could create funding stress when deposits mature.