RBI Swap Facility Draws $40.8 Billion
Foreign currency inflows through the Reserve Bank of India’s special swap facility reached $40.816 billion by July 31, nearly doubling from $20.718 billion recorded two weeks earlier.
RBI Special Swap Facility Inflows
Foreign Currency Non-Resident (Bank), or FCNR(B), deposits accounted for $36.725 billion, representing about 90% of the total funds mobilised through the facility.
Overseas Foreign Currency Borrowings contributed $2.575 billion, while External Commercial Borrowings added another $1.516 billion. The figures were compiled from information submitted by authorised dealer banks participating in the scheme.
Between July 17 and July 31, overall inflows increased by $20.098 billion, or approximately 97%. FCNR(B) deposits alone rose by $19.319 billion during this period, from $17.406 billion to $36.725 billion.
Foreign Currency Deposits Drive Growth
The sharp increase highlights the dominant role of non-resident deposits in attracting overseas funds. Inflows through overseas foreign currency borrowings increased by $605 million over the two weeks, while external commercial borrowings grew by $174 million.
The RBI introduced the concessional swap arrangement to lower foreign-exchange risk for participating banks and encourage them to mobilise fresh foreign currency resources. The measure is intended to strengthen India’s balance of payments and improve foreign-exchange liquidity amid uncertain global market conditions.
RBI Swap Window Deadlines
The facility was announced on June 5 and became operational on June 8. The special window for fresh FCNR(B) deposits will remain available until September 30, 2026.
Concessional swaps covering overseas foreign currency borrowings and external commercial borrowings will continue until December 31, 2026. Initial estimates indicated that the programme could attract up to $70 billion, though subsequent projections have placed potential inflows higher.
