MUMBAI – The Reserve Bank of India (RBI) successfully attracted a significant $136.38 billion in foreign exchange inflows through its special USD-INR forex swap facility by August 31. This initiative, launched on June 8, 2026, was designed to bolster India's foreign currency reserves and stabilize the rupee.
FCNR(B) Deposits Lead Inflows
According to data released by the RBI, Foreign Currency Non-Resident (Bank) deposits, or FCNR(B) deposits, accounted for the vast majority of these inflows, bringing in $127.23 billion. Other components of the facility also contributed, albeit on a smaller scale.
- FCNR(B) Deposits: $127.23 billion
- Overseas Foreign Currency Borrowings (OFCBs): $5.26 billion
- External Commercial Borrowings (ECBs): $3.89 billion
Understanding the Facility Components
The special swap facility covered three primary channels for foreign capital:
- FCNR(B) Deposits: These are foreign-currency denominated deposits maintained by Non-Resident Indians (NRIs) with Indian banks. They allow NRIs to deposit funds in foreign currency, typically US dollars, and earn interest, with the principal and interest repatriable in the original currency.
- External Commercial Borrowings (ECBs): ECBs represent loans raised by Indian companies and other eligible entities from overseas lenders. They are a common source of foreign capital for Indian businesses.
- Overseas Foreign Currency Bonds (OFCBs): These are bonds issued by Indian entities in foreign currency to raise funds from international investors. They provide an avenue for Indian companies to tap into global debt markets.
Deadlines and Provisional Figures
The FCNR(B) component of the scheme was available for deposits mobilized until August 31, 2026. In contrast, the facility for External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) will remain open until December 31, 2026, allowing for continued inflows through these channels.
The RBI has clarified that the latest figures are provisional and are subject to final reporting, accounting, and reconciliation processes.