Foreign currency inflows under the RBI swap facility reached US$143,596 million

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RBI swap facility foreign currency inflows

Highlights

Total foreign currency inflows under the RBI's USD-INR forex swap facility reached US$143,596 million as of September 18, 2026.
FCNR(B) deposits contributed US$132,980 million, while OFCBs stood at US$5,320 million and ECBs at US$5,296 million.
The scheme for ECBs and OFCBs will remain open until December 31, 2026, leaving scope for further foreign currency inflows.

This article was translated from the original. Read the original version by our correspondent here.

Breakdown of inflows under the swap facility

Citing a Reserve Bank of India press release, the Reserve Bank of India said that the central bank launched a special USD-INR forex swap facility covering FCNR(B) deposits, External Commercial Borrowings, and Overseas Foreign Currency Borrowings on June 8, 2026. According to the August 14, 2026 announcement, the scheme for FCNR(B) deposits remained open until August 31, 2026, while it remains open for ECBs and OFCBs until December 31, 2026.

Data reported by authorised dealer banks as of September 18, 2026 show FCNR(B) deposits at US$132,980 million, OFCBs at US$5,320 million, and ECBs at US$5,296 million. Total foreign currency inflows stood at US$143,596 million.

The RBI also clarified that the FCNR(B) figure reflects deposits mobilised up to August 31, 2026. The release is signed by Chief General Manager Brij Raj.

Impact on the banking sector and external borrowing

The data show that FCNR(B) deposits remain the main channel for raising foreign currency under the facility, while contributions from external commercial borrowings and foreign currency borrowings are relatively limited. This highlights banks' stronger ability to mobilise resources through non-resident deposits.

At the same time, with the scheme for ECBs and OFCBs remaining open until the end of December 2026, there is scope for additional foreign currency inflows going forward. The arrangement supports the financial sector in managing foreign currency liquidity and bolsters external funding options.

Large-scale foreign currency inflows through the FCNR(B) window were covered in our previous report, which noted that rapid deposit inflows shifted liquidity conditions in the banking system from a deficit to a surplus, creating a challenge for the RBI to absorb excess cash. The analysis also highlighted that these inflows supported foreign exchange reserves and the balance of payments, although concerns remained that they could put pressure on interest rates, bank margins, and credit deployment in the short term.

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