The RBI has introduced reporting measures for FCNR(B) deposits and External Commercial Borrowings as part of its strategy to enhance capital inflows amid current economic conditions.
New Reporting Measures for Capital Inflows
The Reserve Bank of India (RBI) has established a new reporting framework for Foreign Currency Non-Resident (FCNR(B)) deposits and External Commercial Borrowings (ECBs) mobilized under its concessional swap facility. The announcement was made as part of the RBI's strategy to bolster the balance of payments and increase capital inflows.
This initiative was operationalized following the RBI's announcement on June 5, 2026, regarding concessionary swap rates for fresh deposits and borrowings. The guidelines will be in force until September 30, 2026, for FCNR(B) deposits and until December 31, 2026, for ECBs.
The implications for practitioners are significant, as these measures may facilitate greater foreign investment in Indian markets, hence enhancing liquidity. Legal advisors must ensure compliance with these new regulations by corporate clients seeking capital from foreign entities.
Citations
- RBI Reporting Measures Announcement (2026) RBI Directive