In view of the increasing pressure on the Indian currency Rupee, the Reserve Bank of India (RBI) may once again take a big step. According to Moneycontrol report, RBI is considering relaunching the foreign currency deposit scheme FCNR(B) in the upcoming monetary policy review. Its objective is clearly to stop the fall of rupee and increase the inflow of foreign currency into the country.
FCNR(B) i.e. Foreign Currency Non-Resident (Bank) Deposit is a scheme in which Indians living abroad (NRIs) deposit their money in foreign currency in Indian banks. Due to this, India gets a strong currency like dollar, which strengthens the rupee. There has been a huge decline in these deposits in recent times, which has become a matter of concern. In such a situation, RBI wants to attract foreign money by making this scheme attractive again.
According to the report, there has been a decline of about 26% in NRI deposits between April 2025 and January 2026. FCNR(B) deposits have declined even more rapidly. Those which were earlier more than 7 billion dollars, are now less than 1 billion dollars. This decline shows that the inflow of foreign currency into India has reduced, due to which the pressure on the rupee is increasing.
In recent months, the increasing tension and war-like situation in West Asia has had a direct impact on the Indian rupee. The rupee has depreciated by about 3%, and has weakened by about 10% in the entire financial year. The situation has become more difficult due to rising oil prices and expensive imports. In such a situation, the challenge before RBI is to keep the rupee stable.
This is not the first time that RBI is thinking of such a step. In 2013, when the rupee came under heavy pressure during the taper tantrum, RBI had started a special swap window through FCNR(B). At that time, banks were given the facility to swap dollars at a cheaper rate, due to which about 30 billion dollars came into the country and the rupee became stable. Now there is a possibility of taking a similar step again, although this time the cost may be higher because global interest rates are high.
If RBI implements this scheme, it will increase the flow of dollars in the country, strengthen foreign exchange reserves and provide support to the falling rupee. Besides, banks will also get additional funds, with the help of which they can increase their capacity to give loans. Market experts believe that if the rupee continues to weaken, RBI will soon take concrete steps. Withdrawal of FCNR(B) can be an important strategy, which will help in maintaining economic stability.
