The RBI's measures significantly boosted capital inflows, reaching $136.3 billion by August 31, largely via FCNR(B), and pushing forex reserves to a record $729 billion. This exceeded expectations and stabilized the rupee. However, the surge created a substantial liquidity surplus, posing management challenges for the central bank, necessitating tools like reverse repo auctions. While these flows offer a reprieve, the article emphasizes they don't address deeper economic issues like the current account deficit and the need for stable foreign investment. Tackling these larger concerns remains crucial for sustained foreign capital attraction amidst tightening global conditions.