FCNR(B) deposits saved India from a BoP deficit in July 2026

India’s balance of payments (BoP) received a significant boost in July 2026 as non-resident Indian (NRI) deposits under the FCNR(B) scheme surged to $33.5 billion, accounting for a substantial share of the country’s capital account surplus during the month.

The capital account surplus widened to $27.7 billion in July 2026, nearly eight times the $3.5 billion recorded in July 2025. Dollar denominated bank deposits from NRIs contributed to most of this.

Without the RBI’s special scheme, NRI deposits would have remained at their usual monthly level of $1 billion. Combined with a $15 billion outflow in other bank capital, this would have pushed the capital account into a $4.8 billion deficit. When added to the $7 billion current account deficit, India’s overall BoP would have faced an $11.8 billion deficit, which would have marked the third month of deficit had it not been for FCNR(B) deposits.