New Delhi, July 22 -- Banks raised more than $17 billion through concessional foreign currency non-resident bank deposits after the Reserve Bank of India announced a special mobilization drive on 5 June. This has fuelled optimism that the scheme could outperform the previous FCNR (B) mobilization in 2013, when the RBI used a similar strategy during the taper tantrum to attract dollar inflows and stabilize the rupee. With the special window open till 30 September, can India raise $50 billion? Mint explains.

An FCNR (B) account allows non-resident Indians (NRIs) to keep fixed deposits in India in foreign currency, protecting both the principal and the interest from exchange-rate fluctuations. The deposits are tax-free in India and freely r...