With a whopping $100 billion flowing in via the special FCNR (B) deposit scheme alone, the system will be awash with dollar funds. For the Reserve Bank of India managing surplus liquidity could be a challenge. FE explains the impact of the dollar inflows. The Indian currency has gained enormously from the large dollar flows. It was partly to stem the sharp slide in the currency that the Reserve Bank of India (RBI) decided to attract dollar inflows via a special deposit scheme. In late May the rupee had fallen to levels of nearly 97 against the dollar weighed down by a strong dollar, elevated crude oil prices, and the geopolitical hostilities in West Asia.