NRIs Pour $127 Billion Into RBI Dollar Scheme
India’s special dollar-rupee swap facility has attracted about $136 billion in foreign currency inflows, with non-resident Indian deposits contributing $127 billion, according to provisional figures. The mobilisation has significantly exceeded expectations and strengthened the Reserve Bank of India’s foreign-exchange buffers.
NRI Deposits Bring $127 Billion Into India
Foreign Currency Non-Resident Bank, or FCNR(B), deposits accounted for roughly 93% of the total inflows recorded by August 31.
Another $5 billion came through overseas foreign-currency borrowings by Indian entities, while approximately $3.8 billion was mobilised through external commercial borrowings.
The facility was introduced on June 8 to encourage NRIs and Indian companies to bring additional foreign currency into the domestic financial system.
RBI Scheme Attracts $136 Billion in Total
Inflows accelerated sharply during the final days of the FCNR(B) window. Around $73 billion had been mobilised by August 21, suggesting that more than $60 billion arrived during the following 10 days.
The strong response prompted the RBI to close the FCNR(B) component on August 31, a month earlier than its originally planned September 30 deadline.
Other borrowing channels under the facility will remain available until December 31, meaning the final foreign-currency mobilisation could rise further.
Dollar Inflows Strengthen India’s Forex Buffer
The latest programme has already raised more than five times the approximately $26 billion attracted through a comparable RBI initiative in 2013.
Large foreign-currency inflows can strengthen India’s ability to manage periods of global market volatility, capital outflows and pressure on the rupee.
The provisional figures are subject to final reporting and reconciliation, but the scale of NRI participation has substantially exceeded initial expectations.
