Shoring Up The Indian Rupee: RBI June 2026 Measures

The RBI has implemented significant measures to support the Indian Rupee by incentivizing foreign inflows and removing tax burdens for international investors. Despite these efforts, long-term pressures on the currency persist due to structural FDI outflows and valuation concerns.

Key Takeaways

• 1.The RBI introduced multiple measures in June 2026 to support the Indian Rupee, including subsidizing FX hedging costs for FCNR(B) deposits and removing capital gains taxes for foreign investors on government securities.
• 2.Total inflows from these policy measures are estimated at US$40bn, helping to partially offset a projected balance of payments deficit of US$50bn for FY2026/27.
• 3.Despite near-term support, structural pressure on the Rupee remains due to high FDI repatriation, high valuations, and a lack of significant AI-driven growth compared to other markets.

Table of Contents

• Key Points
• FX Special Focus
• Shoring up the Indian Rupee
• INR remains under pressure from FDI repatriation and capital outflows

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