Foreign currency inflows under RBI's swap facility reached USD 20.7 billion
To strengthen India's balance of payments and boost capital inflows, the RBI's concessional swap facility, launched in June 2026, has been consistently attracting foreign currency. As of July 17, 2026, a total of USD 20,718 million has been raised under this arrangement through FCNR(B) deposits, OFCB, and ECB.
Highlights
- Under the RBI's swap facility, a total foreign currency inflow of USD 20,718 million was recorded as of July 17, 2026.
- USD 17,406 million was raised through FCNR(B) deposits, USD 1,970 million from OFCBs, and USD 1,342 million from ECBs.
- The concessional swap facility implemented from June 8, 2026, ensured robust capital inflows and increased foreign currency resources for the banking sector.
This article was translated from the original. Read the original version by our correspondent here.
Scope of the Swap Facility and Fundraising Status
According to a press release by the Reserve Bank of India (RBI), the central bank announced several measures on June 5, 2026, including a concessional swap facility for fresh FCNR(B) deposits, Overseas Foreign Currency Borrowings, and External Commercial Borrowings. This facility has been effective since June 8, 2026, and is available for FCNR(B) deposits until September 30, 2026, and for OFCB and ECB until December 31, 2026.Based on data received from authorized dealer banks, as of July 17, 2026, inflows of USD 17,406 million from FCNR(B) deposits, USD 1,970 million from OFCBs, and USD 1,342 million from ECBs have been recorded. The combined foreign currency inflow from these three categories totals USD 20,718 million.
Impact on Capital Flows and the Banking Sector
The central bank states that since June 8, 2026, this swap facility has seen strong interest and has enabled a steady inflow of foreign currency. This not only supports India's external sector but also provides additional incentives for banks and borrowers to raise foreign currency resources.The largest share from FCNR(B) deposits indicates that non-resident deposits through the banking channel remain the main driver of this scheme. Meanwhile, OFCB and ECB inflows suggest that corporates and other eligible borrowers are also utilizing the concessional swap arrangement.
Our previous report discussed the pre-determined redemption price set by the RBI for SGB 2020-21 Series X and SGB 2021-22 Series IV maturing in July 2026. It explained that this price is determined based on the simple average of the closing price of 999 purity gold as published by IBJA per gram, providing investors with clarity on cash flows at maturity and enhancing market transparency.
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