3 min readMumbaiJul 15, 2026 01:20 AM IST The Reserve Bank of India’s (RBI) special FCNR(B) deposit mobilisation scheme has helped banks garner close to $10 billion so far, but the pace of inflows has somewhat moderated after an initial surge. While collections had accelerated after the RBI clarified that banks could extend loans against FCNR(B) deposits, the momentum, which has since eased as rising funding costs have made further mobilisation less attractive, is expected to pick up in the coming months, banking officials said. Several obstacles have come up even as banks tried to increase deposits from overseas Indians. The most significant challenge is the 25–40 basis point increase in the cost of raising dollar funds and rise in bond yields in the US and Europe amid the continuing West Asia conflict following the RBI’s June 23 clarification, which enabled leveraged deposit formats. “There’s doubt whether the estimated $ 50-70 billion flow will materialise in the wake of tight conditions but flows will pick up when funding cost and bond yields come down,” said …