India’s central bank is on track to secure up to $95 billion in foreign currency deposits and borrowings in fiscal 2027, aided by relaxed regulations and new support measures to bolster the rupee and external finances.
India’s central bank measures to attract foreign currency deposits and borrowing are on course to bring in as much as $90bn to $95bn in capital during fiscal 2027, according to a CareEdge report cited by ETBFSI. The estimate reflects stronger-than-expected inflows over the past two months and a sharper outlook for Foreign Currency Non-Resident, or FCNR(B), deposits.
CareEdge now expects FCNR(B) inflows to reach about $80bn, while external commercial borrowings and overseas foreign currency borrowings are projected to add another $10bn to $15bn. Together, the flows could provide a substantial boost to India’s external finances and help support the rupee.
The Reserve Bank of India has been using concessional swap windows to make these routes more attractive to banks and borrowers. According to Moneycontrol and Financial Express, the central bank has also relaxed net open position limits on banks for hedged transactions tied to FCNR(B) deposits, ECBs and overseas foreign currency borrowings, a move designed to ease implementation and reduce hedging costs. LiveMint reported that the RBI introduced special dollar-rupee swap facilities for fresh FCNR(B) deposits with tenors of three to five years, alongside similar support for ECBs. That broader package was presented as part of six measures aimed at drawing in more foreign money and steadying the rupee.
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