New Delhi, July 15 -- Domestic banks do not expect significant FCNR(B) deposit inflows from the US under the Reserve Bank of India's (RBI) latest incentive scheme, as many non-resident Indians (NRIs) there remain wary due to stricter tax scrutiny and compliance challenges following the 2013 programme, according to three bankers familiar with the matter.

Several US-based NRIs who had invested in foreign currency non-resident (bank), or FCNR (B), deposits back then allegedly failed to disclose the interest income to US tax authorities, leading to penalties and compliance headaches later. Given these concerns, the bankers cited earlier said they do not expect substantial dollar inflows from the US.

The RBI had launched a similar forex depo...