RBI chief forecasts $80 billion inflow from rupee support initiatives

The Reserve Bank of India is projecting substantial foreign currency inflows totalling around $80 billion from its suite of rupee support measures, according to Governor Sanjay Malhotra. The RBI chief highlighted that financial flows have materialised at a pace exceeding initial expectations, indicating the effectiveness of the central bank's policy interventions.

Malhotra noted that Foreign Currency Non-Resident (Bank) deposits and overseas borrowing channels have already mobilised $56.85 billion. These instruments, designed to attract external funds and support the rupee, have demonstrated strong uptake from non-resident Indians and overseas entities seeking rupee denominated returns.

The inflows represent a critical component of the RBI's broader strategy to bolster foreign exchange reserves and stabilise the Indian currency amid global economic uncertainties. The central bank has expanded avenues for rupee-denominated investments to encourage capital inflows while offering competitive returns to offshore investors.

With inflows trending ahead of projections, the RBI appears confident in meeting its $80 billion target from these measures. The stronger-than-expected response underscores investor appetite for rupee assets and confidence in the Indian economy's fundamentals, even as global markets navigate persistent volatility and shifting monetary policy stances.