Reserve Bank of India (RBI) has mobilised nearly $32 billion through the dollar-inflow schemes introduced in June, according to Governor Sanjay Malhotra.
Speaking to The Hindu BusinessLine, Malhotra said the inflows are expected to strengthen India's balance of payments, with the FCNR deposit scheme contributing the largest share.
Most of the funds mobilised under the schemes have come through Foreign Currency Non-Resident (FCNR) deposits, the RBI Governor said.
He added that the central bank has not found evidence suggesting that a significant portion of these inflows resulted from the rebooking of existing FCNR deposits.
Apart from FCNR deposits, around $7 billion has flowed into debt securities through foreign portfolio investments (FPI).
Malhotra attributed these inflows to changes made in the tax framework.
The RBI Governor said the rise in government cash balances is one of the reasons the higher dollar inflows have not been reflected in rupee liquidity.
He also reiterated that the RBI's approach towards the rupee remains unchanged, with intervention limited to periods of excessive market volatility.
RBI Governor Sanjay Malhotra said it would be reasonable to consider that the rupee is not undervalued and that the current policy repo rate remains appropriate for prevailing growth and inflation dynamics.
He added that while overall inflationary pressures have remained modest, higher food and fuel prices could spill over into broader inflation.
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The RBI's June dollar-inflow initiatives have attracted nearly $32 billion, led by FCNR deposits and supported by FPI inflows into debt securities. The central bank also reaffirmed its position on rupee management, policy rates and inflation risks.
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Published on: Jul 27, 2026, 1:15 PM IST
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