The RBI's FCNR deposit scheme offers a short-term "win-win" for NRIs, banks, and the RBI, attracting $40-100 billion. NRIs gain higher returns via leveraged yen loans, while banks get liquidity and RBI shores up reserves. However, the author cautions that leveraged deposits carry significant risks for depositors due to potential yen appreciation. India faces substantial challenges when these large inflows mature in 3-5 years, requiring careful planning for redemptions. Strengthening FDI/FPI and building foreign exchange reserve buffers are crucial to avoid an onerous impact on India's current and capital accounts.