New Delhi / The Reserve Bank of India (RBI) has achieved a significant milestone in its efforts to strengthen the country’s external financial position, with its special capital-flow measures attracting nearly ₹3.89 lakh crore in foreign capital since their launch in June 2026. The strong inflows underscore growing investor confidence and are expected to provide crucial support to the Indian rupee, foreign exchange reserves, and the overall economy.
The special measures were introduced at a time when the rupee faced pressure due to rising global crude oil prices and foreign portfolio investment outflows. By making it easier and more attractive for banks, non-resident Indians (NRIs), and financial institutions to bring foreign currency into India, the RBI aimed to enhance the country’s external resilience.
Breakdown of Capital Inflows
According to the latest data, the total inflows of nearly ₹3.89 lakh crore have been mobilised through multiple channels:
- ₹3.50 lakh crore was mobilised through Foreign Currency Non-Resident (FCNR) deposits, raised by banks. Under the RBI’s zero-cost hedging facility, banks can swap these deposits with the central bank until the end of September 2026.
- ₹14,310 crore came through swap facilities for External Commercial Borrowings (ECBs).
- ₹24,520 crore was raised through Overseas Foreign Currency Borrowings by authorised lenders, with this facility remaining available until the end of 2026.
Together, these measures have generated substantial foreign currency inflows within less than two months of their implementation.
Why RBI Introduced the Measures
The RBI, in coordination with the Government of India, unveiled the capital-flow package to strengthen India’s external buffers amid global economic uncertainties.
The measures were designed to:
- Support the Indian rupee against external volatility.
- Increase foreign exchange liquidity.
- Encourage banks and NRIs to bring more foreign currency into the country.
- Provide concessional foreign exchange swap facilities.
- Offer full hedging-cost support for eligible FCNR deposits.
- Ease access for foreign investors to invest in Government Securities (G-Secs).
These initiatives were intended to improve India’s ability to finance its current account deficit while maintaining macroeconomic stability.
Positive Outlook for the Economy
Economists believe the strong response demonstrates that the RBI’s policy measures are working as intended. The fresh inflows are expected to:
- Strengthen India’s foreign exchange reserves.
- Improve the country’s external financing position.
- Provide greater flexibility to the RBI in managing currency volatility.
- Boost investor confidence in the Indian economy.
Several research institutions, including SBI Economic Research, have projected that capital inflows could increase further if the current momentum continues over the coming months.
Supporting the Rupee and Financial Stability
The inflow of foreign capital is expected to help finance India’s current account requirements, reduce pressure on the rupee, and provide additional stability during periods of global market uncertainty.
With international financial markets remaining volatile due to geopolitical tensions and fluctuating commodity prices, the RBI’s proactive measures are being viewed as an important step in safeguarding India’s macroeconomic fundamentals.
Key Highlights
- RBI’s capital-flow measures have attracted nearly ₹3.89 lakh crore since June 2026.
- ₹3.50 lakh crore came through FCNR deposits.
- ₹14,310 crore was mobilised via External Commercial Borrowing (ECB) swap facilities.
- ₹24,520 crore was raised through Overseas Foreign Currency Borrowings.
- The measures were introduced to support the rupee, strengthen foreign exchange reserves, and improve external financial stability.
- Economists expect additional inflows if the current trend continues.
Source: Reserve Bank of India (RBI) / Official data.
