RBI Measures Set to Drive Up to $85 Billion Forex Surge Led by Public Sector Banks

India is projected to record substantial overall foreign exchange inflows of ₹7.68–8.15 lakh crore ($80–85 billion), propelled by the Reserve Bank of India’s strategic policy push to incentivize Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits. An SBI Research report highlights that FCNR(B) deposits alone are expected to reach ₹6.24–6.72 lakh crore ($65–70 billion) by the end of the scheme, far outperforming the mobilizations recorded during a similar effort in 2013. By July 17, 2026, total inflows had already reached ₹1.99 lakh crore ($20.72 billion), led by ₹1.67 lakh crore ($17.41 billion) in FCNR(B) deposits alongside supplementary contributions from Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs). Public sector banks have taken center stage as the primary drivers of this influx. Building on rapid short-term gains, SBI Research significantly revised its overall FCNR(B) forecast upward from an initial $40–45 billion, anticipating steady momentum supported by high renewal rates on maturing August–September deposits and high-yield interest offerings. Momentum is further bolstered by an expected ₹95,940 crore ($10 billion) from tax-concession jurisdictions, alongside robust gains in Foreign Currency Assets (FCA), which are projected to add another $10–12 billion in late July. Collectively, these massive sustained forex inflows are set to fortify India's foreign exchange reserves, cushion external sector stability, and cement international investor confidence in the country’s broader macroeconomic framework.