MUMBAI, Sept. 1 -- The Reserve Bank of India's (RBI) foreign currency non-resident bank (FCNR (B)) deposit window closed on Monday after attracting a much larger-than-expected pool of dollars, even as the inflows had a limited success in arresting the decline in the rupee.

Announced on 5 June and implemented from 8 June, the facility allowed banks to raise fresh three- and five-year FCNR(B) deposits from non-resident Indians and swap the dollars with the RBI at a concessional rate that effectively offset the hedging cost. The broader swap package also covered overseas foreign-currency borrowings (OFCBs) and external commercial borrowings (ECBs).

As of 21 August, total inflows under the three swap windows had reached $72.85 billion, incl...