Market expects RBI weekly update on FCNR(B) inflows under swap scheme

Market participants expect the RBI to disclose FCNR(B) inflow data regularly after asking banks to submit daily figures under the special concessional scheme

After the Reserve Bank of India asked banks to submit daily data on FCNR(B) deposits, along with external commercial borrowing and overseas foreign currency borrowing data that are mobilised from the special concessional scheme, market participants expect the central bank to disseminate this data to the public at regular intervals, preferably on a weekly basis.

 

On Friday, the banking regulator asked commercial banks to submit data on FCNR(B) deposits, external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs), starting from Monday, June 22, 2026, by 6 pm every day to the Financial Markets Operations Department (FMOD).

 

FCNR(B) deposits garnered between June 8 and September 30 this year will be eligible for the RBI swap facility. The RBI will bear the full hedging cost on eligible fresh FCNR(B) deposits.

 

 

"By closely tracking FCNR(B) inflows, the RBI can assess whether its policy measures are translating into meaningful foreign currency accretion; also they would like to make sure that the target the central bank would have set for itself is translating into flows or not,” said a senior executive at a state-owned bank. “We expect it to be weekly or daily release of data,” the person added.

 

According to a Nomura report, India’s diaspora has risen by 70 per cent since 2013 and provides a wider pool of investors. The past four diaspora schemes confirm that the country risk premium demanded by investors of Indian origin tends to be lower, the report said.

 

In 2013, when a similar scheme was announced, the RBI disclosed the FCNR(B) inflows data only four times, in October and November. $26 billion in inflows came through the scheme in 2016. The scheme was operational between September 4 and November 30, 2013.

 

This time, the duration of the window is almost four months, compared with a little less than three months in 2016.

 

“Ideally, the RBI should disclose inflow data. Given that the scale of mobilisation is larger than it was in 2013, there is a case for more frequent reporting, perhaps on a weekly basis,” said the treasury head at a private bank.

 

FCNR(B) inflows dropped sharply in the financial year 2025-26, falling to just $946 million compared with $7.08 billion in the previous financial year. Outstanding FCNR(B) deposits stood at $33.8 billion as of March 31, 2026.

 

“The inflow data release would help market participants assess the effectiveness of the measure. I expect the RBI to publish the data; although the timing and frequency of disclosure will likely depend on how often banks report the information to the central bank,” said a market participant.

 

Nomura estimates the 2026 FCNR(B) scheme could attract $55 billion in inflows, with the majority of this likely in August-September.

 

“Compared to 2013, while USD rates are much higher, the 2026 scheme will also provide leverage to investors, which will boost returns,” the Nomura note said.