New Delhi, Sept. 3 -- The Reserve Bank of India's (RBI) window to attract foreign currency deposits that saw shutters drop on 31 August, one month ahead of the initial schedule, has brought in a flood of dollars. RBI on Wednesday said that as much as $127.2 billion has been collected by banks as forex deposits.

A further $9.2 billion came in through overseas foreign currency and external commercial borrowings, which remain open, taking total inflows since the mop-up began to $136.4 billion.

RBI's forex reserves have bulged as a result, having recently hit a record $729 billion, and while excess liquidity has been something of a challenge, India's central bank is better placed to contain rupee volatility in case the currency suffers the ...