NRIs park $65 billion in FCNR-B deposits in 75 days

Banks themselves borrowed $4.860 billion via the overseas foreign currency borrowing route in the same June 8 to Aug. 21 window. Bankers said that shows institutions are leveraging their own balance sheets to fund NRI deposits, parking the proceeds back with the same lenders.

Saumya Kanti Ghosh, group chief economic advisor at State Bank of India, said total collections under the FCNR-B route could hit $85 billion before the window shuts. He estimated the balance of payments surplus at roughly $50 billion, with the current account deficit running at 1% of GDP.

"While there may be valid reasons to justify an early closure of the swap facility, the most likely reason could be that the target for FCNR-B mobilization has already been achieved," Ghosh said.

The deadline was originally scheduled for Sept. 30. RBI pulled it forward one month on Aug. 19. Market participants expect total inflows under the FCNR-B route to approach $80 billion if the final eight days sustain the recent pace.