RBI Forex Swap Facility Attracts $72.85 Billion Inflows as FCNR(B) Deposits Lead Mobilisation
The Reserve Bank of India (RBI) has received $72.85 billion in foreign exchange inflows through its special USD-INR forex swap facility up to August 21, 2026, highlighting a strong response from banks and overseas depositors to the central bank’s initiative to boost dollar inflows into India.
According to News On AIR, the RBI said that Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits accounted for the overwhelming majority of the inflows, contributing around $65.4 billion. Overseas Foreign Currency Borrowings (OFCBs) contributed $4.86 billion, while External Commercial Borrowings (ECBs) accounted for $2.59 billion.
$72.85 Billion Forex Inflows Through RBI Swap Facility
The total foreign exchange inflows mobilised under the special facility stood at $72.85 billion as of August 21, 2026.
The breakup is:
- FCNR(B) deposits: $65.4 billion
- Overseas Foreign Currency Borrowings (OFCBs): $4.86 billion
- External Commercial Borrowings (ECBs): $2.59 billion
- Total inflows: $72.85 billion
The figures show that FCNR(B) deposits were by far the largest contributor to the facility.
RBI Introduced the Facility in June 2026
The RBI introduced the special USD-INR forex swap facility on June 8, 2026, covering inflows through FCNR(B) deposits, ECBs and OFCBs.
The facility was introduced with the objective of boosting dollar inflows into India amid pressure on the Indian rupee.
The strong response to the scheme subsequently led the RBI to shorten the original timeline for the facility, according to News On AIR.
FCNR(B) Window Available Until August 31
The special facility was originally scheduled to remain available until the end of September 2026.
However, following the encouraging response and the substantial foreign exchange inflows generated through the programme, the RBI shortened the FCNR(B) window by one month.
The FCNR(B) deposit facility is now open until August 31, 2026, while the facility covering ECBs and OFCBs remains available until December 31, 2026.
The large inflows are important for India’s external sector because they increase the availability of foreign currency within the financial system.
The initiative comes at a time when the Indian rupee and India’s external accounts are being influenced by global factors including capital flows, commodity prices, geopolitical developments and international trade conditions.
A stronger flow of foreign currency can provide additional liquidity and support the RBI’s management of foreign exchange conditions.
However, the $72.85 billion figure should not be treated as a direct $72.85 billion increase in India’s foreign exchange reserves. It represents foreign exchange inflows mobilised through the specific swap facility.
FCNR(B) Deposits Drive the Response
The most significant component of the programme has been FCNR(B) deposits.
At $65.4 billion, FCNR(B) deposits accounted for almost 90% of the total $72.85 billion mobilised under the facility.
The strong participation indicates substantial interest in bringing foreign currency into India’s banking system through the mechanism offered by the RBI.
The RBI’s forex swap initiative was launched specifically to support dollar inflows at a time when the rupee was facing pressure.
Additional foreign currency availability can help improve liquidity conditions in the foreign exchange market and potentially reduce pressure arising from dollar demand.
For the Indian economy, maintaining adequate foreign exchange liquidity is particularly important because India remains a significant importer of commodities and energy, while global financial conditions can influence foreign capital flows.
Market and Economy Impact
The development is an important macroeconomic positive for India.
For investors, the key implications include:
Better dollar liquidity: The substantial inflows increase foreign currency availability within the banking system.
Support for external stability: Stronger foreign currency mobilisation provides an additional cushion against external shocks.
Potential support for the rupee: Increased dollar inflows can help ease pressure on the domestic currency, although exchange rates are influenced by many other factors.
Positive for investor confidence: Strong participation in the RBI facility demonstrates the ability of India’s financial system to attract foreign currency.
Watch on RBI policy: The response to the facility could influence how the central bank manages foreign exchange liquidity and external-sector risks going forward.
Point to consider
The RBI’s special USD-INR forex swap facility has generated a strong $72.85 billion of foreign exchange inflows, with FCNR(B) deposits accounting for the bulk of the mobilisation.
The strong response provides an important source of dollar liquidity for India’s financial system and comes at a time when the rupee and global trade environment remain sensitive to international developments.
The next important data point for investors will be the final inflows received before the August 31 deadline for the FCNR(B) component of the facility.
Source: News On AIR — RBI says forex inflows under swap facility reach $72.85 billion
Disclaimer: This article is based on information reported by News On AIR on August 22, 2026. It is intended for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security.