RBI’s special USD-INR forex swap facility has attracted $72.85 billion in foreign currency inflows by August 21, 2026. The scheme launched in June to ease rupee pressure and boost dollar availability in the banking system. Foreign investors and non-resident Indians responded strongly to the central bank’s targeted measures.
FCNR(B) Deposits Drive Majority of Inflows
FCNR(B) deposits contributed $65.397 billion, accounting for nearly 90 percent of total inflows. Overseas Indians and banks participated actively in the deposit scheme. The FCNR(B) window closes on August 31, 2026, ending new deposit collection under this facility. This deadline arrives one month earlier than originally planned by the central bank.
OFCB and ECB Routes Add Supplementary Flows
Overseas Foreign Currency Borrowings brought in $4.86 billion through the facility. External Commercial Borrowings added another $2.591 billion to the total. Both channels remain open until December 31, 2026, for continued fundraising by Indian entities. These routes provide flexibility for corporate borrowers seeking dollar funding abroad.
RBI Governor Sees Target Within Reach
Governor Sanjay Malhotra had projected at least $80 billion in total forex inflows from these measures. The current $72.85 billion figure brings that goal close to achievement. Malhotra described the early FCNR(B) closure as a data-driven calibration, not a policy shift. He noted that marginal benefit from each additional dollar swap was declining steadily. The decision reflects careful assessment of market conditions and inflow momentum.
Rupee Stability Persists Despite Massive Inflows
Rupee has not strengthened sharply like in 2013 despite the $72.85 billion inflow. Currency trades near levels seen on June 5 when RBI announced the measures. Banking system dollar availability has improved significantly through the facility. Markets now watch the August 31 deadline for the FCNR(B) window closure closely. The central bank may assess further steps after the window closes to maintain forex reserve adequacy.
