Here’s what you need to know: The RBI opened a special swap window in June 2026, letting banks offer NRIs interest rates as high as 7.4%. Result? Billions poured in from overseas Indians wanting to park money safely in India; and earn top returns. This influx didn’t just pad our forex reserves; it also gave the RBI more firepower to defend the rupee, which had been under pressure after over $40 billion in FPI outflows in 2025–2026. But here’s the catch: These deposits are liabilities. They can reverse if global rates rise or if the RBI removes the incentive. As Infomerics’ Manoranjan Sharma says, “Record reserves = short-term buffer, not long-term fix.” For exam aspirants: Keep an eye on FCNR(B) as a key RBI tool for managing forex. Expect questions on how it impacts rupee stability, NRI inflows, and external liabilities.