RBI's FCNR(B) scheme attracts $41 billion, Jefferies says inflows may double to $80-100 billion

New Delhi: The Reserve Bank of India's (RBI) Foreign Currency Non-Resident Bank (FCNR-B) deposit scheme has attracted stronger-than-expected inflows, with around USD 41 billion mobilised so far, and the total is expected to reach USD 80-100 billion by the time the scheme closes on September 30, according to a latest report by Jefferies.The report said the scheme, introduced by the RBI in early June to raise foreign currency deposits from non-resident Indians (NRIs) and support the rupee, has performed better than expected.According to Jefferies, There have so far been USD 41bn of inflows through the scheme and that is expected to double to USD 80-100bn in the next two months when the scheme ends.

Also Read: FCNR(B) is now Plan A for Gulf NRIs, leaving India-focused funds behindThe RBI announced the facility for concessional swaps on fresh FCNR-B deposit inflows on June 5.

The facility will remain available until September 30.Jefferies said the strong response to the scheme is one of the key positives for India's economy and capital inflows.

It added that the inflows are expected to help stabilise the rupee after a period of weakness.The report stated, All this increases the likelihood that the rupee should stabilise.