RBI's Forex Swap Facility Attracts USD 20.72 Billion Inflows Since June; FCNR(B) Deposits Lead

Mumbai, July 20, 2026: The Reserve Bank of India (RBI) on Monday said its concessional swap facility, introduced to encourage foreign currency inflows, has attracted USD 20.72 billion till July 17.

The swap facility has seen strong interest and attracted steady forex inflows since June 8, 2026, the central bank said in a statement.

A strong mobilisation was witnessed through Foreign Currency Non-Resident (Bank), or FCNR(B), deposits.

Of the total inflows, FCNR(B) deposits accounted for USD 17.406 billion, while Overseas Foreign Currency Borrowings (OFCBs) contributed USD 1.97 billion and External Commercial Borrowings (ECBs) amounted to USD 1.342 billion.

Swap Facility Drives Forex Inflows

"With a view to strengthening our balance of payments and incentivising capital inflows, the RBI had announced a series of measures, including a facility for offering concessional swaps for fresh FCNR(B) deposits, OFCB and ECB inflows on June 5, 2026," the central bank said.

The RBI had introduced the swap facility on June 5, 2026, as part of a host of measures to strengthen India's balance of payments and incentivise capital inflows.

The facility was operationalised on June 8, 2026, and is available up to September 30, 2026, for FCNR(B) deposits and up to December 31, 2026, for OFCBs and ECBs.

The measures were announced as part of the RBI's efforts to strengthen India's external sector position and support foreign exchange liquidity amid global market uncertainties.

Banks Expect Inflows To Rise

According to some initial estimates, the schemes could yield inflows of up to USD 70 billion in forex through the window, but of late, there have been some voices that have gone public with doubts.

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Banks remain optimistic about a sharp pick-up in Foreign Currency Non-Resident (Bank), or FCNR(B), deposits before the RBI's September 30 deadline for the special scheme, despite initial inflows falling below expectations.

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