The Reserve Bank of India (RBI) has stated that the Indian rupee remains undervalued, while recent policy measures have attracted strong foreign capital inflows, with FCNR(B) deposits reaching nearly $32 billion and foreign investments in government securities crossing $7 billion.

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• RBI Governor Sanjay Malhotra stated that the Indian rupee remains undervalued, indicating confidence in the currency’s long-term fundamentals despite ongoing global financial uncertainties and market volatility.
• Following the Reserve Bank of India’s June 2026 policy measures, banks have mobilised nearly $32 billion, primarily through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, reflecting strong investor confidence in India’s financial system.
• Foreign investors have also invested more than $7 billion in Government Securities (G-Secs) since the policy measures, further strengthening India’s external sector and improving capital inflows.
• The RBI Governor dismissed concerns that the recent inflows merely represent a recycling of existing overseas deposits, stating that the funds reflect genuine investor interest in India’s economic prospects.
• According to the RBI, the central bank possesses adequate monetary and liquidity management tools to effectively absorb and manage any excess liquidity arising from the increased foreign capital inflows.
• Governor Malhotra reiterated that controlling inflation remains the RBI’s foremost policy priority, while ensuring financial stability and supporting sustainable economic growth.
• The strong inflow of FCNR(B) deposits and foreign investment has enhanced India’s resilience against global geopolitical uncertainties, volatile capital flows, and external financial risks.
• The latest capital inflows are expected to strengthen India’s foreign exchange reserves, improve external stability, support the balance of payments, and reinforce investor confidence in the Indian economy.