India attracted $127.23B in FCNR-B deposits through RBI’s special forex swap facility, boosting foreign exchange inflows and strengthening the external sector.
Key Points
- India attracted USD 127.23 billion in FCNR-B deposits through the RBI’s special USD-INR forex swap facility.
- The facility was launched to strengthen India’s external sector and support foreign exchange liquidity.
- Total foreign exchange inflows reached USD 136.377 billion by August 31, with FCNR-B deposits being the primary contributor.
- The FCNR-B window was closed early on August 31, 2026, due to an overwhelming response from Non-Resident Indians.
- The swap scheme for Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs) remains open until December 31, 2026.
Mumbai, Sep 2 (PTI) India attracted a whopping USD 127.23 billion in Foreign Currency Non-Resident (FCNR-B) deposits under the Reserve Bank’s special USD-INR forex swap facility till August 31, the closing date, which was advanced by a month following a robust response from the Indian diaspora.
The RBI’s special USD-INR forex swap facility for FCNR (B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECBs) was launched on June 8, 2026.
The facility was announced as part of the RBI’s efforts to strengthen India’s external sector position and support foreign exchange liquidity amid global market uncertainties.
The measures have led to a surge in foreign exchange inflows into the country, with total inflows of USD 136.377 billion as on August 31, according to the RBI data.
Foreign Currency Non-Resident (Bank), or FCNR(B), deposits alone accounted for USD 127.226 billion (provisional), underscoring the overwhelming response of Non-Resident Indians to the scheme, the RBI said.
Under the FCNR (B) scheme, banks offered attractive interest rates to mobilise foreign currency deposits.
The response has been strong enough for the RBI to advance the closure of the FCNR(B) window itself, from September 30 to August 31, 2026, having already achieved its objective ahead of schedule.
FCNR(B) deposits are foreign-currency-denominated fixed deposits, and both the principal and interest are repayable in the same foreign currency.
Overseas Foreign Currency Borrowings (OFCBs) contributed USD 5.26 billion to the inflows while External Commercial Borrowings (ECBs) amounted to USD 3.891 billion, taking total inflows to USD 136.377 billion.
The swap scheme for ECBs and OFCBs will remain open until December 31, 2026, as hitherto.
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