FCNR(B) accounts let non-resident Indians place fixed deposits in foreign currencies, including dollars and pounds. The RBI ended the special window one month ahead of schedule. Experts estimate collections might have exceeded $80 billion had it remained open longer, though that was a projection rather than an actual inflow.

The exchange-rate response has been modest. From 95.71 against the dollar in June 2026, the rupee moved to roughly 95.60 in August, an improvement of about 0.1 per cent. In 2013, a comparable initiative accompanied an 8.8 per cent rise, with the exchange rate moving from 65.70 to around 59.89.

Economists point to a tougher global backdrop this time. SBI’s Soumya Kanti Ghosh described the limited movement as helpful nonetheless. Elevated inflation, costly crude and high US interest rates are weighing on the currency. IDFC First Bank Chief Economist Gaura Sengupta attributed its stability to RBI intervention supported by the deposit inflows.

The funds have strengthened the RBI’s ability to manage currency volatility, rather than produced a major rally. Larger collections would also bring repayment exposure when deposits mature after three to five years. Converting foreign funds into rupees adds banking-system liquidity, complicating monetary management. Expensive Brent crude and attractive US Treasury yields remain sources of pressure.