RBI’s USD-INR swap facility mobilises $73 bn in less than 11 weeks

• The Reserve Bank of India’s USD-INR forex swap facility for FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECB) has mobilised foreign exchange inflows of $73 billion as of August 21, 2026.

• Foreign Currency Non-Resident-Bank deposits alone accounted for $65.40 billion of the total mobilisation, reflecting a significant response from NRIs and overseas depositors.

• The RBI advanced the closure of the FCNR(B) swap window by a month to August 31 as against the earlier cut-off date of September 30.

• The scheme started on June 8 with the objective to attract foreign capital to stem the falling rupee against the dollar.

• The pace of mobilisation has surpassed expectations.

• The scale is also significantly higher than the RBI’s 2013 FCNR(B) swap scheme, which had mobilised around $26 billion over nearly three months.

• The strong response has prompted the RBI to advance the closure of the FCNR(B) window to August 31 from the earlier scheduled date of September 30, after the facility achieved its objective ahead of schedule.

• The large-scale mobilisation of long-term non-resident deposits and institutional funding is expected to strengthen India’s external buffers while providing foreign-currency resources to the banking and corporate sectors.

• The response to the facility also highlights the continuing role of the Indian diaspora in supporting the country’s financial and economic growth, with NRIs channelling their savings into Indian banking instruments.

• The strong mobilisation comes against the backdrop of a challenging global financial environment and is being seen as a reflection of confidence in the resilience of the Indian economy and its banking system.