RBI swap scheme draws $40.8 billion in overseas currency inflows

The RBI's concessional foreign exchange swap facility has attracted $40.816 billion in overseas currency inflows since June. FCNR (B) deposits account for most of the mobilisation, while SBI Research expects total inflows under the scheme to rise significantly before it closes

New Delhi: The Reserve Bank of India (RBI) on Saturday said its concessional foreign exchange swap facility has attracted $40.816 billion in overseas currency inflows since June when it was launched.

Foreign Currency Non-Resident (Bank) deposits account for the bulk of the mobilisation, according to data received from authorised dealer banks.

---

Total inflows under the facility stood at $40.816 billion as of July 31. FCNR (B) deposits contributed $36.725 billion to the total, while Overseas Foreign Currency Borrowings (OFCBs) accounted for $2.575 billion. External Commercial Borrowings (ECBs) brought in a further $1.516 billion.

The swap facility has seen avid interest and attracted steady forex inflows since June 8, 2026, the RBI said in a statement.

“RBI had announced a facility for offering concessional swaps for fresh FCNR (B) deposits, OFCB and ECB inflows, on June 5, 2026 and the same was operationalised on June 8, 2026, which is available up to September 30, 2026, for the FCNR (B) deposits and up to December 31, 2026, for the OFCBs and ECBs,” said Central Bank.

According to a latest report, India may receive FCNR (B) deposits in the range of $65-70 billion by the end of the RBI scheme on September 30, and, overall, $80-$85 billion.

An SBI Research report said that “We now estimate that FCNR (B) since then has already crossed 2013 level of $26 billion in just 45 days”.

The earlier RBI data indicated that FCNR (B) deposits worth $17.4 billion have been mobilised till July 17, 2026 and trend suggests that PSBs are major drivers of this mobilisation.

“We also believe that significant majority of existing FCNR deposits which are going to mature in August/September 2026 will be renewed under the new scheme (gravitated by higher interest rates) and will boost the FCNR (B) inflows,” the report mentioned.

Public Sector Banks, front led by larger banks, are apparently anchoring the drive, ensuring incremental flows by leveraging not only the deposits, but also the trust built with materially significant clientele (credit worthiness and risk profile duly factored) spread across various geographies and remaining tacitly agile by shifting their strategy to an optimally blended Onshore-Offshore game plan.