India’s central bank pulls in $41B with targeted capital-flow measures in just two months

When the Reserve Bank of India rolled out a package of capital-flow measures in early June 2026, the goal was straightforward: stabilize the rupee and pull in foreign currency. Two months later, the results suggest it’s working better than most expected. By August 1, the RBI’s targeted initiatives had attracted approximately $40.81 billion in cumulative foreign currency inflows. How the RBI built a $41B magnet The central bank announced its measures between June 5 and June 8, deploying two primary tools. First, it offered zero-cost hedging for Foreign Currency Non-Resident (Bank) deposits, known in financial shorthand as FCNR(B) deposits. Second, it expanded access to long-dated government securities, with the window set to remain open until September 30, 2026. The breakdown of where the money came from tells the story clearly. FCNR(B) deposits dominated, accounting for $36.7 billion of the total, roughly 90% of all inflows. External Commercial Borrowings contributed $1.5 billion, while Overseas Foreign Currency Borrowings added another $2.57 billion. Within the first month, ending around July 20, inflows had already surpassed $20 billion. That means the second month nearly matched...