# FCNR(B) Window Shuts 30 September: NRI Read

By Saurabh Garg, founder·6 min read·Published 2026-08-07
# NRIs Put $36.7 Billion Into Indian Dollar Deposits by 31 July. The Window Shuts on 30 September

**On 5 August 2026 RBI Governor Sanjay Malhotra said there is no proposal to close the FCNR(B) incentive scheme early. Banks had raised $36.7 billion under it by 31 July. The scheme still ends on 30 September, and money sitting in your NRO account cannot go through it.**

If you own property in India and live abroad, this is the first RBI move in years that pays you directly rather than changing a form you have to file. It is also the one with a hard end date on it.

## What the RBI did in June

Two moves, nine days apart.

On 8 June 2026, under circular FMOD.MAOG.No.S-56/01.06.016/2026-27, the RBI opened a concessional US dollar to rupee swap window for banks. A bank that takes a fresh FCNR(B) deposit of three to five years can pass the currency risk to the RBI at close to no cost. That hedging cost runs about 280 to 300 basis points a year. The bank no longer eats it, so it can pay it to the depositor instead. Deposits have to be booked between 8 June and 30 September 2026 to qualify. The swap leg itself can be executed up to 16 October 2026.

On 17 June 2026 the RBI issued six amendment directions, numbered RBI/2026-27/138 through RBI/2026-27/143, covering commercial banks, small finance banks, regional rural banks, local area banks, and urban and rural co-operative banks. They withdrew the interest rate ceiling on fresh FCNR(B) deposits of three years and above up to five years, and on fresh NRE deposits of three years and above, until 30 September 2026.

The old caps were real constraints. FCNR(B) money in the three to five year bucket was capped at the overnight reference rate for that currency plus 350 basis points. NRE deposits were capped at what the same bank paid a resident on a comparable rupee deposit. Both caps are suspended until the end of September and return on 1 October 2026 unless the RBI extends them.

What that did to the shelf: dollar rates of roughly 5.5% to 7.1% a year across banks, against 2% to 4% before June. Kotak listed 6.00% on USD three to five year deposits under $1 million and 6.15% above it as of 11 June.

## What has actually come in

By 31 July 2026 banks had mobilised close to $41 billion under the swap window. Of that, $36.7 billion came through FCNR(B) deposits, $2.57 billion through overseas foreign currency borrowings and $1.5 billion through external commercial borrowings. State Bank of India and ICICI Bank account for more than half the FCNR(B) inflows.

Speaking on 5 August, Malhotra said there is no proposal to close the scheme early, and the RBI expects reserves to cross $700 billion within weeks on the back of these flows. SBI Research has put FCNR(B) mobilisation at $65 billion to $70 billion by 30 September, and $80 billion to $85 billion across all three channels. Those are a research desk's estimates, not an RBI number.

The same day, the Monetary Policy Committee held the repo rate at 5.25% for a fifth straight meeting and kept a neutral stance.

## The line that catches property owners

Your NRO account is out.

FCNR(B) deposits under this scheme can be funded from an NRE balance or a fresh remittance from abroad. NRO funds do not qualify. The 17 June direction on NRE deposits carries the same exclusion in writing: transfers from NRO accounts do not get the ceiling exemption.

That matters because NRO is exactly where an India property owner's money sits. Rent credited by a tenant lands in NRO. Sale proceeds land in NRO. Both arrive after tax has been deducted. To move that money into the window, you have to repatriate it out of NRO first, which is its own process with its own annual limit of USD 1 million and its own paperwork. We set that out in [repatriating property sale proceeds from an NRO account](/guides/repatriating-property-sale-proceeds-nro) and the forms in [the 15CA and 15CB guide](/guides/form-15ca-15cb-guide), now Forms 145 and 146.

There is also a lock-in. FCNR(B) deposits booked under the scheme cannot be withdrawn early in the first year.

## What this does not change

Nothing about owning property in India moved in June or August. The rules on buying, on the two-property repatriation route, on TDS when you sell, on the USD 1 million NRO cap, all stand where they were. This is a deposit-rate measure aimed at India's external balance, and the RBI has said as much.

Read it as one input if you are already weighing whether to keep a flat or sell it, which we lay out in [the NRI guide to selling property in India](/guides/nri-selling-property-in-india-guide). It is not a reason to sell, and this is a report on what the RBI did, not advice on where to put your money. Talk to your own adviser before you book anything.

## FAQ

**When does the FCNR(B) window close?**
Deposits must be booked between 8 June and 30 September 2026. The interest rate ceilings on FCNR(B) three to five year deposits and NRE three year and above deposits return on 1 October 2026 unless the RBI extends the relaxation.

**Can I use money from my NRO account for an FCNR(B) deposit under this scheme?**
No. The deposit has to be funded from an NRE balance or a fresh remittance from overseas. The NRE ceiling exemption also excludes transfers from NRO accounts.

**How much have banks raised so far?**
$36.7 billion through FCNR(B) deposits as of 31 July 2026, and close to $41 billion including overseas foreign currency borrowings and external commercial borrowings. SBI Research estimates $65 billion to $70 billion of FCNR(B) money by 30 September.

*66 MG Road newsdesk*

## Sources

- Business Standard, "RBI expects strong FCNR(B) inflows, rules out early closure of window" (5 August 2026): [https://www.business-standard.com/finance/news/rbi-expects-strong-fcnr-b-inflows-rules-out-early-closure-of-window-126080501516_1.html](https://www.business-standard.com/finance/news/rbi-expects-strong-fcnr-b-inflows-rules-out-early-closure-of-window-126080501516_1.html)

- Prokerala / IANS, "No proposal to prematurely end FCNR(B) incentive scheme: RBI Governor" (5 August 2026), $36.7bn as of 31 July and the $700bn reserves line: [https://www.prokerala.com/news/articles/a1796618.html](https://www.prokerala.com/news/articles/a1796618.html)

- CorpLawUpdates, "RBI Temporarily Withdraws FCNR(B) and NRE Deposit Interest Rate Ceiling Across All Bank Categories, Six Amendment Directions Dated June 17, 2026" (RBI/2026-27/138 to 143): [https://www.corplawupdates.in/updates/rbi-withdraws-fcnr-b-nre-deposit-interest-rate-ceiling-june-2026](https://www.corplawupdates.in/updates/rbi-withdraws-fcnr-b-nre-deposit-interest-rate-ceiling-june-2026)

- Candour Legal, "RBI's FCNR(B) Forex Swap Facility 2026", circular FMOD.MAOG.No.S-56/01.06.016/2026-27 dated 8 June 2026, mobilisation window, 16 October swap execution date, one-year lock-in and the 280 to 300 bps hedging cost: [https://candourlegal.com/rbi-fcnrb-swap-facility-2026-nri-gift-city/](https://candourlegal.com/rbi-fcnrb-swap-facility-2026-nri-gift-city/)

- Kotak Mahindra Bank, "RBI FCNR(B) Swap Window 2026 Guide For NRIs", rates as of 11 June 2026 and the NRO funding restriction: [https://www.kotak.bank.in/en/stories-in-focus/nri/fcnr-b-swap-window-2026.html](https://www.kotak.bank.in/en/stories-in-focus/nri/fcnr-b-swap-window-2026.html)

- Business Standard, "RBI lifts cap on FCNR(B), NRE deposit rates to boost foreign inflows" (17 June 2026): [https://www.business-standard.com/amp/finance/news/rbi-lifts-cap-on-fcnr-b-nre-deposit-rates-to-boost-foreign-inflows-126061701121_1.html](https://www.business-standard.com/amp/finance/news/rbi-lifts-cap-on-fcnr-b-nre-deposit-rates-to-boost-foreign-inflows-126061701121_1.html)

- Forbes India, "RBI MPC Meeting Highlights: Repo Rate Unchanged at 5.25%, Retains Neutral Stance" (5 August 2026): [https://www.forbesindia.com/article/news/rbi-mpc-live-updates-august-2026-repo-rate-sanjay-malhotra-policy-announcement-liveblog/2996705/1](https://www.forbesindia.com/article/news/rbi-mpc-live-updates-august-2026-repo-rate-sanjay-malhotra-policy-announcement-liveblog/2996705/1)

- Upstox, "RBI policy August 2026: Rates unchanged at 5.25%" (5 August 2026): [https://upstox.com/news/market-news/latest-updates/rbi-policy-august-2026-rates-unchanged-at-5-25-inflation-likely-to-peak-at-5-9-in-q3-fy-27-check-key-takeaways/article-198142/](https://upstox.com/news/market-news/latest-updates/rbi-policy-august-2026-rates-unchanged-at-5-25-inflation-likely-to-peak-at-5-9-in-q3-fy-27-check-key-takeaways/article-198142/)

Information on this page is as on 2026-08-07. Rules, rates, deadlines and government portals change without notice, so verify against the official source before you act. This page is for information only. It is not tax or legal advice, and it is not a substitute for a qualified adviser who knows your position.

## Compare and cost

- [The NRI Property Management Companies in India: A Comparison You Can Check](/guides/best-nri-property-management-companies-india)
- [What NRI Property Management Costs in India: The Four Models and What Hides in Each](/guides/nri-property-management-cost-india)
- [NoBroker NRI Services Review: What the Pages Promise and What They Leave Out](/guides/nobroker-nri-services-review)

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Source: [https://66mgroad.com/guides/nri-fcnr-b-swap-window-30-september-aug-2026](https://66mgroad.com/guides/nri-fcnr-b-swap-window-30-september-aug-2026) · 66 MG Road. Full LLM brief: https://66mgroad.com/llms.txt