New Delhi: The Reserve Bank of India’s (RBI) concessional foreign exchange swap facility has attracted overseas currency inflows of $40.816 billion since its launch in June, with Foreign Currency Non-Resident (Bank) (FCNR-B) deposits making up the largest share, according to the central bank.
Data received from authorised dealer banks showed that total inflows under the scheme stood at $40.816 billion as of July 31. Of this, FCNR (B) deposits contributed $36.725 billion, while Overseas Foreign Currency Borrowings (OFCBs) brought in $2.575 billion. External Commercial Borrowings (ECBs) accounted for the remaining $1.516 billion.
The RBI said the swap facility has witnessed strong participation and steady foreign exchange inflows since it became operational on June 8, 2026.
The central bank had announced the concessional swap scheme on June 5, 2026, to encourage fresh FCNR (B) deposits, OFCBs and ECB inflows. The facility remains open for FCNR (B) deposits until September 30, 2026, while the window for OFCBs and ECBs will continue until December 31, 2026.
According to an SBI Research report, FCNR (B) deposits could reach $65–70 billion by the time the scheme closes in September, while total inflows under the facility may touch $80–85 billion.
The report also noted that FCNR (B) deposits had already surpassed the $26 billion mobilisation achieved during the 2013 scheme within just 45 days, reflecting the strong response from overseas depositors.
Earlier RBI data had shown FCNR (B) deposits worth $17.4 billion mobilised by July 17, 2026, with public sector banks playing a leading role in attracting these funds.
SBI Research expects a significant portion of FCNR deposits maturing in August and September to be renewed under the current scheme, supported by higher interest rates. The report added that large public sector banks are driving the mobilisation by leveraging long-standing customer relationships across global markets while adopting a balanced onshore and offshore strategy to maximise inflows.
With inputs from IANS