RBI Swap Facility Generates $72.85 Billion in Forex Inflows
The Reserve Bank of India (RBI) on Saturday said that it has generated $72.85 billion in foreign exchange through its special swap facility covering FCNR(B) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs). The figure, reported by Authorised Dealer Banks to the RBI, is dated August 21, 2026.
According to the central bank, the inflows comprise $64.40 billion through FCNR(B) deposits, $4.86 billion via OFCBs, and $2.59 billion through ECBs. These instruments were made available under the special USD-INR Forex Swap facility introduced on June 08, 2026.
The facility was launched to bolster India's forex reserves, which had come under pressure due to the depreciation of the Indian Rupee. The rupee faced headwinds from foreign portfolio investor (FPI) outflows and a high oil import bill.
As previously announced on August 14, 2026, the scheme remains open until August 31, 2026 for FCNR(B) deposits. For ECBs and OFCBs, the window extends up to December 31, 2026. This extension provides banks and borrowers additional time to avail of the swap facility, which allows them to hedge their foreign currency borrowings at attractive rates.
The RBI's intervention through such swap arrangements is aimed at enhancing the country's foreign exchange buffer and stabilising the rupee in the face of global economic uncertainties. The data reported by banks reflects the initial response to the facility, which is expected to attract further inflows as the windows close.
