RBI Special Swap Scheme Attracts $20.72 Billion in Foreign-Exchange Inflows

Indian banks have mobilised $20.718 billion in foreign-exchange inflows under the Reserve Bank of India’s special swap facilities, indicating a strong response to measures introduced to attract overseas capital and reinforce India’s external-sector position.

The figures cover inflows received between the operationalisation of the facilities on June 8 and July 17, 2026. According to data released by the RBI, the largest contribution came through Foreign Currency Non-Resident (Bank), or FCNR(B), deposits. Banks mobilised $17.406 billion through this route, accounting for the overwhelming majority of the total inflows.

Overseas Foreign Currency Borrowings, known as OFCBs, contributed another $1.970 billion, while eligible External Commercial Borrowings added $1.342 billion. The combined mobilisation through the three channels reached $20.718 billion within around six weeks of the facilities becoming operational.

The RBI announced the special measures on June 5, 2026, with the objective of strengthening India’s balance of payments and encouraging stable foreign-currency inflows. The facilities allow eligible banks and borrowers to access US dollar–rupee foreign-exchange swaps on favourable terms, helping reduce the cost of managing currency exposure. They became operational on June 8.

The FCNR(B) component has emerged as the principal source of mobilisation. FCNR(B) accounts allow eligible non-resident Indians to place deposits with Indian banks in foreign currencies. Since the deposits are maintained in foreign currency, they provide banks with access to overseas funds while offering depositors protection from movements in the Indian rupee.

Under the RBI’s special window, the swap facility applies to fresh FCNR(B) deposits mobilised for eligible periods. The government and the central bank have also introduced supporting measures intended to make these deposits more attractive and help banks offer competitive returns to overseas Indians.

During a review meeting held on July 13, Union Finance Minister Nirmala Sitharaman discussed the progress of the FCNR(B), ECB and OFCB initiatives with the managing directors and chief executives of public-sector banks and public financial institutions. The banks reported encouraging interest from the Indian diaspora and overseas funding markets.

The FCNR(B) swap window will remain available for eligible deposits mobilised until September 30, 2026. The facilities covering eligible Overseas Foreign Currency Borrowings and External Commercial Borrowings will continue for inflows received until December 31, 2026.

The mobilisation of more than $20.7 billion provides Indian banks and eligible borrowers with an additional source of foreign-currency funding. Such inflows can strengthen external liquidity, support the financing of international obligations and improve the availability of foreign exchange within the banking system.

The composition of the inflows also highlights the role of the overseas Indian community in supporting India’s financial system. More than four-fifths of the total amount came through FCNR(B) deposits, making diaspora-linked savings the central pillar of the scheme’s early performance.

The RBI’s initiative forms part of a broader effort to maintain confidence in India’s external sector amid global financial uncertainty, volatile energy prices and shifting international capital flows. The continued mobilisation of funds before the September and December deadlines will determine the full scale of the programme’s contribution to foreign-currency liquidity and India’s balance-of-payments position.

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Reference:

Reserve Bank of India. “Reporting of FCNR(B) Deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) Mobilized under Reserve Bank’s Swap Facility.” 20 July 2026. https://www.rbi.org.in/

News on AIR. “FOREX Inflow Crossed Over $20 Billion under RBI’s Special Swap Scheme.” Akashvani, 21 July 2026. https://newsonair.gov.in/forex-inflow-crossed-over-20-bn-under-rbis-special-swap-scheme/

Press Information Bureau, Government of India. “Union Finance Minister Nirmala Sitharaman Interacts with MDs and CEOs of Public Sector Banks and Public Financial Institutions on RBI Swap Facility Schemes.” Ministry of Finance, 13 July 2026. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284162

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