RBI foreign exchange swap facility draws $40.816 billion till July 31, FCNR (B) deposits lead
New Delhi, Aug 1
The Reserve Bank of India on Saturday said its concessional foreign exchange swap facility has attracted $40.816 billion in overseas currency inflows since June when it was launched.
Foreign Currency Non-Resident (Bank) deposits account for the bulk of the mobilisation, according to data received from authorised dealer banks.
Total inflows under the facility stood at $40.816 billion as of July 31. FCNR (B) deposits contributed $36.725 billion to the total, while Overseas Foreign Currency Borrowings (OFCBs) accounted for $2.575 billion. External Commercial Borrowings (ECBs) brought in a further $1.516 billion.
The swap facility has seen avid interest and attracted steady forex inflows since June 8, 2026, the RBI said in a statement.
"RBI had announced a facility for offering concessional swaps for fresh FCNR (B) deposits, OFCB and ECB inflows, on June 5, 2026 and the same was operationalised on June 8, 2026, which is available up to September 30, 2026, for the FCNR (B) deposits and up to December 31, 2026, for the OFCBs and ECBs," said Central Bank.
According to a latest report, India may receive FCNR (B) deposits in the range of $65-70 billion by the end of the RBI scheme on September 30, and, overall, $80-$85 billion.
An SBI Research report said that "We now estimate that FCNR (B) since then has already crossed 2013 level of $26 billion in just 45 days".
The earlier RBI data indicated that FCNR (B) deposits worth $17.4 billion have been mobilised till July 17, 2026 and trend suggests that PSBs are major drivers of this mobilisation.
"We also believe that significant majority of existing FCNR deposits which are going to mature in August/September 2026 will be renewed under the new scheme (gravitated by higher interest rates) and will boost the FCNR (B) inflows," the report mentioned.
Public Sector Banks, front led by larger banks, are apparently anchoring the drive, ensuring incremental flows by leveraging not only the deposits, but also the trust built with materially significant clientele (credit worthiness and risk profile duly factored) spread across various geographies and remaining tacitly agile by shifting their strategy to an optimally blended Onshore-Offshore game plan.
— IANS
Reader Comments
While the numbers are impressive, I hope the RBI is also looking at the long-term picture. These deposits will mature in a few years, and we need to ensure we're using this window to strengthen our manufacturing base rather than just relying on short-term inflows. Just saying we need balanced approach.
Wonderful! This shows how NRIs always come through for India in times of need. The fact that we crossed the 2013 level of $26 billion in just 45 days speaks volumes about the confidence in our economy. Jai Hind! 🙏
Interesting data. As an NRI living in the US, I can say many of my friends have been exploring FCNR (B) deposits because the rates are quite attractive compared to what we get here. This is a smart policy move by the RBI to tap into the diaspora's savings.
This is all good but let's not get carried away. We need to see how these inflows translate into actual investment in infrastructure and job creation. If this money just sits in reserves while our youth struggle for employment, then it's just a band-aid solution. Hope the government uses this wisely.
Great initiative! The fact that public sector banks are leading this drive shows their strong client relationships, especially with the diaspora. This will definitely help cushion any global economic shocks. More power to our banking system! 📈
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