India's central bank has successfully mobilized $40.81 billion through a suite of capital-flow management instruments designed to bolster the rupee and attract foreign investment.
The Reserve Bank of India (RBI) disclosed the figures, highlighting the effectiveness of its recent policy adjustments in channeling funds into the domestic economy.
The largest component of this inflow comes from Foreign Currency Non-Resident (FCNR) deposits, which have attracted $36.
The largest component of this inflow comes from Foreign Currency Non-Resident (FCNR) deposits, which have attracted $36.7 billion.
These deposits allow non-resident Indians and foreign entities to place funds in Indian banks in foreign currencies, providing a stable source of external financing while mitigating exchange-rate risk for the depositors.
The remaining inflows stem from other regulatory measures, including external commercial borrowings and rupee-denominated bonds issued by Indian companies abroad.
This surge in capital aligns with a broader trend of renewed investor interest in Indian assets.