RBI's forex swap scheme pulls in record $143.6 billion till Sep 18
Of this, $132.980 billion came through FCNR(B) deposits, while overseas foreign currency borrowings (OFCBs) brought in $5.320 billion, and external commercial borrowings (ECB) $5.296 billion
- Sep 21, 2026,
- Updated Sep 21, 2026 8:17 PM IST
The Reserve Bank of India's special forex swap facility has attracted nearly $143.6 billion in foreign currency inflows, with FCNR(B) deposits accounting for the overwhelming share.
Fresh data released by the RBI on Monday (September 21) showed that authorised dealer banks had reported total forex inflows of $143.596 billion as of September 18.
Of this, $132.980 billion came through FCNR(B) deposits, while overseas foreign currency borrowings (OFCBs) brought in $5.320 billion, and external commercial borrowings (ECB) $5.296 billion.
Read More: India’s forex reserves jump $44.9 billion to record $785.71 billion
The sheer size of the inflows, however, has created another challenge for the central bank.
As the RBI takes dollars from banks under the swap, it releases rupees in return. This has injected a large amount of domestic currency into the financial system. Banks are now sitting on a substantial liquidity surplus, forcing the RBI to step up efforts to absorb the excess cash.
The RBI announced the special swap facility on June 5 and operationalised it on June 8. The facility covered fresh FCNR(B) deposits as well as ECB and OFCB inflows.
Must Read: Are FCNR-B deposits really an expensive source of funding?
The central bank closed the window for FCNR(B) on August 31 after a strong response. The ECB and OFCB windows will remain open until December 31.
The measure was introduced "with a view to strengthen our balance of payments and incentivise capital inflows," according to an earlier RBI release.
The scheme effectively made it more attractive for banks to mobilise long-term foreign currency deposits from non-resident Indians.
Fresh FCNR(B) deposits eligible for the facility had to carry maturities of between three and five years. Banks could swap the foreign currency raised through these deposits with the RBI, reducing the currency risk associated with bringing those dollars into India.
The RBI also exempted eligible fresh FCNR(B) deposits from Cash Reserve Ratio and Statutory Liquidity Ratio requirements, further improving the economics of raising these deposits for banks.
According to the latest RBI numbers, about 92.6% of the $143.596 billion mobilised under the facility came from FCNR(B) deposits. The $132.98 billion figure represents deposits mobilised until the FCNR(B) window closed on August 31.
The Reserve Bank of India's special forex swap facility has attracted nearly $143.6 billion in foreign currency inflows, with FCNR(B) deposits accounting for the overwhelming share.
Fresh data released by the RBI on Monday (September 21) showed that authorised dealer banks had reported total forex inflows of $143.596 billion as of September 18.
Of this, $132.980 billion came through FCNR(B) deposits, while overseas foreign currency borrowings (OFCBs) brought in $5.320 billion, and external commercial borrowings (ECB) $5.296 billion.
Read More: India’s forex reserves jump $44.9 billion to record $785.71 billion
The sheer size of the inflows, however, has created another challenge for the central bank.
As the RBI takes dollars from banks under the swap, it releases rupees in return. This has injected a large amount of domestic currency into the financial system. Banks are now sitting on a substantial liquidity surplus, forcing the RBI to step up efforts to absorb the excess cash.
The RBI announced the special swap facility on June 5 and operationalised it on June 8. The facility covered fresh FCNR(B) deposits as well as ECB and OFCB inflows.
Must Read: Are FCNR-B deposits really an expensive source of funding?
The central bank closed the window for FCNR(B) on August 31 after a strong response. The ECB and OFCB windows will remain open until December 31.
The measure was introduced "with a view to strengthen our balance of payments and incentivise capital inflows," according to an earlier RBI release.
The scheme effectively made it more attractive for banks to mobilise long-term foreign currency deposits from non-resident Indians.
Fresh FCNR(B) deposits eligible for the facility had to carry maturities of between three and five years. Banks could swap the foreign currency raised through these deposits with the RBI, reducing the currency risk associated with bringing those dollars into India.
The RBI also exempted eligible fresh FCNR(B) deposits from Cash Reserve Ratio and Statutory Liquidity Ratio requirements, further improving the economics of raising these deposits for banks.
According to the latest RBI numbers, about 92.6% of the $143.596 billion mobilised under the facility came from FCNR(B) deposits. The $132.98 billion figure represents deposits mobilised until the FCNR(B) window closed on August 31.