India’s central bank pulls in $41B with targeted capital-flow measures in just two months

When the Reserve Bank of India rolled out a package of capital-flow measures in early June 2026, the goal was straightforward: stabilize the rupee and pull in foreign currency. Two months later, the results suggest it’s working better than most expected.

By August 1, the RBI’s targeted initiatives had attracted approximately $40.81 billion in cumulative foreign currency inflows.

How the RBI built a $41B magnet

The central bank announced its measures between June 5 and June 8, deploying two primary tools. First, it offered zero-cost hedging for Foreign Currency Non-Resident (Bank) deposits, known in financial shorthand as FCNR(B) deposits. Second, it expanded access to long-dated government securities, with the window set to remain open until September 30, 2026.

The breakdown of where the money came from tells the story clearly. FCNR(B) deposits dominated, accounting for $36.7 billion of the total, roughly 90% of all inflows. External Commercial Borrowings contributed $1.5 billion, while Overseas Foreign Currency Borrowings added another $2.57 billion.

Within the first month, ending around July 20, inflows had already surpassed $20 billion. That means the second month nearly matched the first, suggesting sustained interest rather than a one-time rush.

Throughout this period, the RBI kept its repo rate unchanged at 5.25% during its June meeting, maintaining a supportive monetary stance that complemented the capital-flow measures.

What investors should watch next

SBI Economic Research has projected that the RBI’s measures could ultimately attract between $80 billion and $85 billion in total, with FCNR(B) deposits alone potentially reaching $65 billion to $70 billion. If those projections hold, the current $41 billion represents roughly the halfway mark.

The September 30 deadline for the expanded government securities access creates a natural pressure point. Investors looking to take advantage of the favorable terms have less than two months remaining, which could accelerate inflows as the window narrows.

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