Overview
- RBI’s special package announced in early June has mobilised about $10–11 billion through FCNR(B), ECB and OFCB routes as of mid-July 2026.
- The central bank is bearing hedging costs via a concessional dollar‑rupee swap and temporarily removed the FCNR(B) rate cap to make dollar deposits cheaper for banks.
- Many banks are offering attractive rates roughly between 5.5% and 7.1%, with some FCNR(B) offers priced higher than comparable rupee deposits to win funds.
- An RBI clarification allowing loans and liens against FCNR(B) deposits has led to leveraged deposit products that promise high dollar returns but carry interest‑rate, liquidity, tax, concentration and counterparty risks.
- Authorities and bankers still point to larger potential inflows — commonly cited targets of $50–80 billion — but they say those estimates depend on global bond yields, overseas funding costs and investor appetite.