Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits have emerged as the primary driver of the Reserve Bank of India's (RBI) concessional foreign exchange swap facility. These deposits account for more than 90% of the total $40.82 billion mobilized since the scheme's inception in June.
Strong Inflows Reported by RBI
According to data released by the central bank on Saturday, total inflows under the special swap window reached $40.816 billion as of July 31, 2026. This figure underscores sustained participation from both banks and non-resident depositors.
Specifically, FCNR(B) deposits contributed a significant $36.725 billion to the total. Other funding channels also played a role, with Overseas Foreign Currency Borrowings (OFCBs) adding $2.575 billion and External Commercial Borrowings (ECBs) contributing $1.516 billion.
Scheme Timelines and Participation
The RBI launched this facility on June 8, 2026, and it has consistently attracted foreign currency inflows. The window for fresh FCNR(B) deposits will remain open until September 30, 2026. Meanwhile, the concessional arrangements for OFCBs and ECBs are set to continue until December 31, 2026, allowing for further mobilization of foreign capital.
This scheme is critical for managing India's foreign exchange reserves and ensuring stability in the financial markets.