Blitz Bureau
NEW DELHI: India received FCNR deposits in the range of $65-70 billion which surpassed an all time record, an SBI Research report said on July 27.
The RBI figure of $20 billion inflows (till July 17) came as a positive reprieve, chiefly with a smart FCNR (B) corpus of $17.4 billion.
“We now estimate that FCNR (B) since then has already crossed 2013 level of $26 billion in just 45 days,” said Dr. Soumya Ghosh, Group Chief Economic Adviser, SBI.
The RBI data indicates that FCNR deposits worth $17.4 billion have been mobilised till July 17, 2026 and trend suggests that PSBs are major drivers of this mobilisation.
“We also believe that significant majority of existing FCNR deposits which are going to mature in August/September 2026 will be renewed under the new scheme (gravitated by higher interest rates) and will boost the FCNR (B) inflows,” the report mentioned.
Preliminary estimate indicate that amount worth $10 billion on a conservative basis in addition to base line estimates are going to be mobilised mostly through those economies where tax concessions are available.
“Nevertheless, given the current trend we believe that total amount mobilised so far in 45 days has easily crossed the total amount mobilised in 2013 in three months,” the report noted.
However, broader markets are still wrestling with the co-relation of these flows with first FCA position and why the exchange rate has continued to weaken even after such strong capital inflows.
